FELDA GLOBAL VENTURES PLANTATIONS (MALAYSIA) SDN BHD
RSPO Membership No: 1-0013-04-000-00
PLANTATION MANAGEMENT UNIT KKS Sg. Tengi Grouping Kuala Kubu Baharu, Selangor, Malaysia
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ANNUAL SURVEILLANCE ASSESSMENT REPORT ON RSPO CERTIFICATION
PUBLIC SUMMARY REPORT
FELDA GLOBAL VENTURES PLANTATIONS (MALAYSIA) SDN BHD (358158-V)
RSPO Membership No: 1-0013-04-000-00
PLANTATION MANAGEMENT UNIT KKS Sg. Tengi Grouping Kuala Kubu Baharu, Selangor, Malaysia
Certificate No: RSPO 929788 Issued date: 04 Dec 2014 Expiry date: 03 Dec 2919
Assessment Type Assessment Dates Initial Certification (Main Assessment) 29 Sep – 02 Oct 2014 Annual Surveillance Assessment (ASA-01) 05 – 08 Oct 2015 Annual Surveillance Assessment (ASA-02) Annual Surveillance Assessment (ASA-03) Annual Surveillance Assessment (ASA-04) Re-Certification
Intertek Certification International Sdn Bhd (formerly known as Moody International Certification (Malaysia) Sdn Bhd) 6-L12-01, Level 12, Tower 2, Menara PGRM No. 6 & 8 Jalan Pudu Ulu, Cheras, 56100 Kuala Lumpur, Malaysia. Tel: +00 (603) 9283 9881 Fax: +00 (603) 9284 8187 Email: [email protected] Website: www.intertek.com
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TABLE OF CONTENTS
Section Content Page No 1.0 SCOPE OF ASSESSMENT 4 1.1 Introduction 4 1.2 Location (address, GPS and map) mill, estates and hectarage 4 1.3 Description of supply base (fruit sources) 4 1.4 Year of plantings and cycle 5 1.5 Summary of Land Use – Conservation and HCV Areas 6 1.6 Other certifications held and Use of RSPO Trademarks 6 1.7 Organizational information/contact person 6 1.8 Tonnages Verified for Certification 7 1.9 Time Bound Plan 8 1.10 Abbreviations Used 9 2.0 ASSESSMENT PROCESS 10 2.1 Assessment Methodology, Plan & Site Visits 10 2.2 Date of next scheduled visit 11 2.3 Qualifications of the Lead Assessor and Assessment Team 11 2.4 Certification Body 11 2.5 Process of Stakeholder consultation 11-12 3.0 ASSESSMENT FINDINGS 13 3.1 Summary of findings 13-50 3.2 Status of Identified Noncompliance and Corrective Actions, Observations 50-62 and Identified Positive Elements 3.3 Summary of Feedback Received from Stakeholders and Findings 62-64 4.0 ASSESSMENT CONCLUSION AND RECOMMENDATION 65 4.1 Acknowledgement of Internal Responsibility and Confirmation of Assessment 65 Findings
4.2 Intertek RSPO Certification Details for KKS Sg. Tengi Grouping 66
APPENDICES Appendix A Qualifications of the Lead Assessor and Assessment Team 67-68 Appendix B Assessment Plan 69-70 Appendix C Maps of location – Mill, Estates, Conservation and HCV areas 71-75 Appendix D Photographs of Assessment findings at KKS Sg. Tengi Grouping 76 Appendix E Time Bound Plan for Other Plantation Management Units 77-80
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1.0 SCOPE OF ASSESSMENT
1.1 Introduction This Surveillance Assessment was conducted on the Plantation Management Unit (PMU) at KKS Sg. Tengi Grouping of Felda Global Ventures Plantations (Malaysia) Sdn Bhd (hereafter abbreviated as FGVPM), on 05-08 Oct 2015, to assess the organization’s operations of the mill and its supply bases for compliance against the RSPO Principles and Criteria (Apr 2013), Malaysian National Interpretation (MYNI 2014) and the RSPO Supply Chain Certification Standard (Nov 2014) for Palm Oil Mill.
The plantation management unit (PMU) or management unit is equivalent to a certification unit as defined in the RSPO Certification Systems Document. Each PMU consists of one mill and its supply bases which are made up of estates owned and/or managed by FGVPM.
1.2 Location (address, GPS and map) of palm oil mill and estates KKS Sg. Tengi Grouping consists of one (1) palm oil mill, namely Sg. Tengi Mill and four (4) estates as indicated in Table 1 below, which includes the addresses and GPS locations of the mill and estates. The location maps are provided in Appendix C. All the 4 estates (viz., FELDA/FTP Gedangsa estate, FELDA/FTP Soeharto estate, FELDA/FTP Sg Tengi Selatan and FELDA/FTP Sg. Tengi estate consist of smallholders (FELDA settlers), each with a land title for an approximate area of 4.0 ha. In this PMU, the smallholders may be categorized as FTP Smallholders or FELDA Smallholders. The FTP Smallholders are those smallholders who applied for their planted area to be managed by Felda Technoplant Sdn. Bhd. (FTP). The FELDA Smallholders are those smallholders who choose to manage their own planted area within the FELDA Settlers’ Scheme. The sampling of estates and sampled number of FTP Smallholders and FELDA Smallholders are as indicated in Table 8 ( section 2.1 ). The palm oil mill is operated by FGVPM.
Table 1: Address of Palm Oil Mill, Estates and GPS Location GPS Reference Name Address Latitude Longitude Sg. Tengi Mill - POM Kilang Sawit Sungai Tengi, 44100 Kuala Kubu Baharu, 3°35'9.93"N 101°24'56.17"E (Capacity: 54 MT/hour) Selangor Darul Ehsan, Malaysia FELDA/FTP Gedangsa Felda Gedangsa, 44010 Kuala Kubu Baharu, 3°35'17.31"N 101°30'15.31"E estate Selangor Darul Ehsan, Malaysia FELDA/FTP Soeharto Felda Soeharto, 44010 Kuala Kubu Baharu, 3°40'54.00"N 101°23'18.00"E estate Selangor Darul Ehsan, Malaysia FELDA/FTP Sg Tengi Felda Sg. Tengi Selatan, 44010 Kuala Kubu 3°37'9.00"N 101°25'30.00"E Selatan estate Baharu, Selangor Darul Ehsan, Malaysia FELDA/FTP Sg Tengi Felda Sg. Tengi, 44010 Kuala Kubu Baharu, 3°37'11.00"N 101°55'5.77"E estate Selangor Darul Ehsan, Malaysia
1.3 Description of supply base (fruit sources)
The supply base i.e. FFB sources to the POM at KKS Sg. Tengi Grouping PMU are from the abovementioned 4 estates of this PMU and FFB from Outside Crop Producers (OCP). The FFB from the PMU estates are certified FFB and FFB from OCP are considered as non-certified FFB.
Details of the planted hectarage for the FFB supply for Sg. Tengi Grouping are as shown in Table 2 below.
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Table 2: Estate Area Summary
Area Summary (ha) - 2014 Area Summary (ha) - 2015 Estate Certified Planted Certified Planted (Titled) Area Area (Titled) Area Area FELDA/FTP Gedangsa estate 2,469.21 2,206.76 2,469.21 2,206.76 FELDA/FTP Soeharto estate 3,565.29 3,100.29 3,565.29 3,100.29 FELDA/FTP Sg Tengi Selatan estate 647.71 559.19 647.71 559.19 FELDA/FTP Sg Tengi estate 2,535.56 2,333.06 2535.56 2333.06 Total: 9,217.77 8,199.30 9,217.77 8,199.30 Notes: 1. This Assessment covered the overall land use for oil palm plantation areas, and the identified Conservation areas including any HCV areas (if any) marked out at the estates. 2. The estates sampled for this Assessment have been selected based on their potential risks on social, environmental and biodiversity issues such as their proximity to forest reserves, hill sides, riparian zones and any high conservation value areas.
1.4 Summary of plantings and cycle The 4 estates have been developed beginning from 1982. FELDA/FTP Sg Tengi Selatan estate had been completely replanted while part of FELDA/FTP Gedangsa estate had been replanted (2 nd cycle). FELDA/FTP Soeharto and FELDA/FTP Sg Tengi estates are still in the 1 st cycle of planting. The age profile is as shown in Table 3.
Table 3: Age Profile of Planted Oil Palm (2015)
Estate Name Year of Planting Cycle of Mature OP (ha) Immature OP (ha) Planting – Above 3 years – 3 years & below 1993, 1995, 1997, 1st 2,006.20 - FELDA/FTP 2001, 2006, 2007, 2009
Gedangsa estate 2011, 2012, 2013 2nd - 200.56 FELDA/FTP 1990, 1992, 1993, 1996, 1st 3,100.29 - Soeharto estate 2001, 2006 FELDA/FTP Sg 2007, 2008 2nd 559.19 - Tengi Selatan estate FELDA/FTP Sg 1993, 1994, 2000 1st 2,333.06 - Tengi estate Total 7,998.74 200.56
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1.5 Summary of Land Use - Conservation and HCV Areas The summary of Conservation and HCV Areas as identified in KKS Sg. Tengi Grouping during this assessment is as shown in Table 4 below:
Table 4: Conservation and HCV Areas
# Statement of Land Use (Ha) 2014 2015 Hectarage (Ha) Hectarage (Ha) 1 Planted Area (ha) – Oil Palm - Mature 7,998.74 7,998.74 - Immature 200.56 200.56 2 Conservation Area (ha) - comprising buffer zones along small streams, hilly areas, 130.50 130.50 swampy and unplantable areas 3 HCV Area (ha) - comprising buffer zones near forest reserves, water 157.20 157.20 catchments, burial & religious sites
1.6 Other certifications held and Use of RSPO Trademarks Presently KKS Sg. Tengi Grouping holds valid ISO 9001, ISO 14001 and OHSAS 18001 certifications for the Palm Oil Mill. The RSPO’s trademarks and logo are not used by the PMU audited. Instructions for use were provided and acknowledged by the PMU through a signed Memorandum of commitment agreeing to adhere to the latest “RSPO Rules on Communications & Claims” during the assessment.
1.7 Organizational information / Contact Person
Name: Norazam Abdul Hameed Designation: General Manager, Sustainability and Quality Management (PSQM) Department Full Address: Plantation Sustainability and Quality Management (PSQM) Department, Felda Global Ventures Plantations (Malaysia) Sdn Bhd (FGVPM), Menara Felda Platinum Park, Level 20 No 11 Persiaran KLCC, 50088 Kuala Lumpur, Malaysia. Tel: +603 2859 1995 Fax: +603 2859 0016 Email: [email protected]
Name: Anthonius Sani Designation: Sustainability Manager, Plantation Sustainability and Quality Management (PSQM) Department Full Address: Plantation Sustainability and Quality Management (PSQM) Department, Felda Global Ventures Plantations (Malaysia) Sdn Bhd (FGVPM), Menara Felda Platinum Park, Level 20 No 11 Persiaran KLCC, 50088 Kuala Lumpur, Malaysia. Tel: +603 2859 1623 Fax: +603 2859 0016 Email: [email protected]
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1.8 Tonnages Verified for Certification
1.8.1 The breakdown of all the suppliers and their tonnages of FFB supplied to the POM at KKS Sg. Tengi Grouping based on the actual for Jan – Dec 2014 are as follows:
Table 5: Tonnages Verified for Certification FFB Received Main Receiving RSPO P&C # Estate /Supplier (MT) Palm Oil Mill Certification PMU Estates (certified): FELDA/FTP Gedangsa estate 1. 27,002.13 KKS Sg. Tengi Intertek – FTP Smallholders FELDA/FTP Gedangsa estate 2. 440.95 KKS Sg. Tengi Intertek – FELDA Smallholders FELDA/FTP Soeharto estate 3. 32,813.08 KKS Sg. Tengi Intertek – FTP Smallholders FELDA/FTP Soeharto estate 4. 4,200.81 KKS Sg. Tengi Intertek – FELDA Smallholders FELDA/FTP Sg Tengi Selatan estate 5. 13,459.64 KKS Sg. Tengi Intertek – FTP Smallholders FELDA/FTP Sg Tengi Selatan estate 6. 0 KKS Sg. Tengi Intertek – FELDA Smallholders
FELDA/FTP Sg Tengi estate Intertek 7. 14,938.94 KKS Sg. Tengi – FTP Smallholders
FELDA/FTP Sg Tengi estate Intertek 8. 29,895.31 KKS Sg. Tengi – FELDA Smallholders Sub-total from PMU estates: Certified 122,750.86
Outside Crop Producers (OCP): 9. Samuri Kachong 140.80 10. PPK Hulu Selangor 1,652.52 11. Lim Ah Cheu & Sons Trading Sdn Bhd 7,502.45 12. RAH Corporation 12,131.23 13. Poh Lim Enterprise 580.75 14. Delloyd Plantation 6,482.39 15. Tai Ichi Entprise Sdn Bhd 32,704.09 16. Sepakat Maju 225.56 17. Sern Lee Enterprise Sdn Bhd 13,841.37 18. Timah Jaharah bt. Abdul Ghani 1,636.50 19. Kim Ma Oil Palm 1,789.84 20. Bakti Mas 9,547.67
Sub-total from OCP: Non-certified 88,235.17 GRAND TOTAL 210,986.03
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1.8.2 Total annual volumes / tonnages of FFB supplied from the supply base to KKS Sg. Tengi Grouping POM during the previous period, current assessment period and projected period are as follows:
Table 6: Comparison of Processed Tonnages FFB Processed in FFB Processed in FFB Processed for Estate / Supplier Jan – Dec 2014 Jan – Dec 2015 Jan – Dec 2016 - Actual - Actual + Projected - Projected MT % MT % MT % Certified FFB from Sg. Tengi 122,750.86 58.20 132,277.90 62.97 140,000.00 63.63 PMU estates Non-certified FFB from OCP 88,235.17 41.80 77,782.42 37.03 80,000.00 36.36 Total 210,986.03 100.00 210,060.32 100.00 220,000.00 100.00 SCCS Model for POM MB MB MB
1.8.3 The annual certified tonnages of CPO and PK production by the PMU Grouping as assessed and verified during this current assessment and projected for next year are detailed as follows:
Table 7: Comparison of Certified Tonnages Only Jan – Dec 2014 Jan – Dec 2015 Jan – Dec 2016 POM (Actual) (Actual + Projected) (Projected) Total certified FFB 122,750.86 132,277.90 140,000.00 Processed (MT)
Total certified CPO % OER: % OER: % OER: 24,820 26,191 28,014 Production (MT) 20.22 19.80 20.01
Total certified PK % KER: % KER: % KER: 7,144 7,685 8,260 Production (MT) 5.82 5.81 5.90
Note: The POM has established and maintained procedures for the book keeping and monitoring requirements for the CPO at the mill. It is verified the POM has procedures for the ‘ Mass Balance – MB” model in accordance with the RSPO Supply Chain Certification Standards (SCCS) requirements. Verified activities and checked items for the SCCS of the POM are reported in section 3.1.1.
1.9 Time Bound Plan for Other Plantation Management Units
FELDA / FGVPM Group operate 70 palm oil mills and 416 oil palm estates and schemes throughout Malaysia. The organization is a member of RSPO since 2004 and has been taking an active role in the RSPO certification.
Currently, a significant number of its Certification Units is undergoing the RSPO certifying process in accordance with its time bound plan to achieve RSPO certification for all its plantation certification units by 2017.
Intertek was able to verify that FELDA / FGVPM has been conducting periodical review of its due diligence process for all its plantations both certified and non-certified under their Time Bound Plan as required under the RSPO requirements under Partial Certification (4.2.4) whereby all cases of ongoing complaints and allegations on their certified and non-certified plantation units were responded and duly made available to any interested party.
Intertek was able to obtain the updates and responses by FGVPM on the allegations which are made publicly available via the web link below:
1. FGV’s response to the Wall Street Journal (WSJ) article, 27 Jul. 2015 http://www.feldaglobal.com/fgvs-response-to-the-wall-street-journal-wsj-article/
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2. FGV Clarifies on Wall Street Journal Allegations of Abuses of Malaysian Plantations, 30 Aug. 2015. http://www.feldaglobal.com/fgv-clarifies-on-wall-street-journal-allegations-of-abuses-of-malaysian- plantations/#sthash.vsdSEPqp.dpuf
Intertek had also referred to the RSPO’s Complaints website for the latest update on any cases of complaints filed against Felda/FGVPM under the web link below:
Land dispute claim at Lahad Datu, Sabah against FELDA filed by RSPO on 16 Feb 2015 http://www.rspo.org/members/status-of-complaints?keywords=FELDA&country=&category= http://www.rspo.org/members/complaints/status-of-complaints/view/79
Based on Intertek’s review on the progress made to-date, FGVPM is considered to have maintained its commitment under the 4.2.4 Partial certification requirements to ensure that there were no significant land conflicts, no replacement of primary forest or any area containing HCVs since Nov 2005, no labour disputes that are not being resolved through an agreed process, no evidence of non-compliance with law in any of the non-certified holdings.
FGVPM had also updated it’s declaration on the new planting and new acquisition of plantation units / lands and the progress of the said activities are ongoing. These have been reviewed and updated in the Time Bound Plan as submitted by FGVPM.
Details of the present status of the Time Bound Plan as submitted by FGVPM are in Appendix E.
1.10 Abbreviations Used
BOMBA Fire Services Department ISCC International Sustainability & Carbon Certification CB Certification Body IUCN International Union for Conservation of Nature CHRA Chemical Health & Risk Assessment JAS Jabatan Alam Sekitar CPO Crude Palm Oil JKKP Jabatan Kesihatan dan Keselamatan Pekerja CSDS Chemical Safety Data Sheets KER Kernel Extraction Rate CSPO Certified Sustainable Palm Oil LTA Lost Time Accidents CSPK Certified Sustainable Palm Kernel MPOB Malaysia Palm Oil Board DOE Department of Environment MSDS Material Safety Data Sheets DOSH Department of Occupational Safety and MTCS Malaysia Timber Certification Scheme Health EFB Empty Fruit Bunch NCR Non-Conformance Report EHS Environmental Health & Safety NGO Non-Government Organization EIA Environmental Impact Assessment OER Oil Extraction Rate ETP Effluent Treatment Plant OHS Occupational Health & Safety Programme for the Endorsement of Forest FASSB Felda Agricultural Services Sdn Bhd PEFC Certification FELDA Federal Land Development Authority PK Palm Kernel Felda Global Ventures Plantations (Malaysia) FGVPM PMU Plantation Management Unit Sdn Bhd FFB Fresh Fruit Bunch POM Palm Oil Mill GAP Good Agriculture Practice POME Palm Oil Mill Effluent HCV High Conservation Values PPE Personal Protective Equipment Intertek Intertek Certification International Sdn Bhd SCCS Supply Chain Certification Standard IPM Integrated Pest Management SOP Standard Operating Procedures
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2.0 ASSESSMENT PROCESS
2.1 Assessment Methodology, Plan and Site Visits
Since 07 Aug 2015, Intertek has initiated public communications and notifications and invited the relevant stakeholders before the assessment to provide feedback and comments on their concern (if any) on KKS Sg. Tengi Grouping regarding the environmental, biodiversity, community development and other relevant issues.
From 05-08 Oct 2015, the Assessment team conducted the Surveillance Assessment in which two estates (viz., FELDA/FTP Soeharto estate and FELDA/FTP Sg. Tengi estate) of KKS Sg. Tengi Grouping as well as the palm oil mill were assessed for compliance against the RSPO requirements. The number of estates sampled was based on a minimum sample of 0.8 √y where y is the number of estates and the selection was made based on their potential risks on social, environmental and biodiversity issues such as their proximity to forest reserves, hill sides, riparian zones and high conservation value areas.
Since the PMU consists of FTP Smallholders and FELDA Smallholders, a second level of sampling of smallholders was carried out for assessment as shown in Table 8 below in addition to the first level of sampling for the estates. The assessment carried out included a combination of field inspections and interviews of the sampled FELDA Smallholders. In this PMU, all the FELDA Smallholders’ planted areas are managed by their cooperative organization.
Table 8 Sampling Plan of Estates and Smallholders
1st Level of FELDA/FTP FELDA/FTP FELDA/FTP FELDA/FTP sampling of Gedangsa estate Soeharto estate Sg. Tengi Selatan Sg. Tengi estate estates estate Sample size √ - √ - 2nd Level of No. of No. of No. of No. of No. of No. of No. of No. of sampling of FTPS FS FTPS FS FTPS FS FTPS FS estates 575 6 575 78 139 0 324 232 Sample size 20 2 20 7 10 0 15 13 Legend: FTPS = FTP Smallholders (managed by FTP) FS = FELDA Smallholders (smallholders managing their own plots within the FELDA Settlers’ Scheme) Note: Total no. of Smallholders in the PMU is 1929.
During the on-site assessment, relevant documents and records, including Standard Operating Procedures (SOP), management plans, hectarage development, FFB, CPO and PK production, oil palm age profile, operational controls and measures, operational data and records, training records, etc. were reviewed and verified for compliance. The Assessment team using the process approach auditing technique covered the palm oil mill and estate operations, agricultural practices, pest management, pesticide and fertilizer application, occupational health and safety, social accountability, environment and other requirements. Stakeholders’ interviews were conducted during the assessment and feedback obtained as part of information and evidence gathering. (See section 2.5 Process of stakeholder consultation).
KKS Sg. Tengi Grouping POM was also assessed against the requirements of RSPO Supply Chain Certification Standard for CPO mill. This part of the assessment covered the verification of implementation of documented procedures and availability of records to demonstrate compliance against all the elements for the ‘Mass Balance’ - MB Module requirements. These include documented procedure, purchasing and goods in, record keeping, sales and goods out, processing, monitoring and traceability of the CSPO and CSPK quantities, training for staff and claims.
The details of the Assessment Plan (actual on-site) are provided in Appendix B.
After completion of the on-site field assessment, Intertek also performed the evaluation of conformity against the RSPO Certification System requirements for CB. The assessment report, findings and associated documents were evaluated through an independent review by the Intertek Internal Technical Reviewer/Panel prior to the approval of this report and decision on continued certification by Intertek.
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2.2 Date of next scheduled visit
The next scheduled visit will be the next Annual Surveillance Assessment which will be carried out within a 12-month period of the certificate anniversary date.
2.3 Qualifications of the Lead Assessor and Assessment Team
Competency details of the Lead Assessor and Assessment Team are given in Appendix A.
2.4 Certification Body
Intertek Certification International Sdn Bhd [formerly known as Moody International Certification (Malaysia) Sdn Bhd] is part of the Intertek Group, which is a worldwide technical services organization dedicated to reducing clients' risks by providing technical inspection services, management system certification in quality, environmental, occupational safety & health and product certification, RSPO SCC, ISCC, Marine Sustainability Chain-of-Custody, MTCS and PEFC Chain-of Custody certification in applicable industry sectors including the agricultural and forestry sectors. Intertek operates globally providing clients with a wide-ranging technical inspection expertise and access to thousands of skilled specialists worldwide. Intertek Group’s certification business is ranked in the top 10 worldwide, and is available globally offering certification across a wide range of industries.
2.5 Process of stakeholder consultation
Stakeholder consultations began with notification of the upcoming assessment through the websites of RSPO, FGVPM and Intertek. E-mails were sent to applicable stakeholders including government agencies, NGOs and local communities. E-mails and telephone enquiries were made prior to the actual assessment and stakeholder’s response and feedback received were followed up accordingly.
During the assessment, stakeholders were interviewed and their feedbacks were recorded. Among the stakeholders consulted were workers, trade union leaders, women representatives; local community leaders, representatives of government departments / agencies, NGOs, suppliers and contractors.
Details on stakeholders’ feedback, PMU response and Intertek verification / comments are provided in section 3.3.
Among the list of key stakeholders consulted was the following:
Government Agencies (by emails) 1. Department of Lands And Mines 2. Department of Environment 3. Department of Forestry Peninsular Malaysia 4. Department of Immigration 5. Department of Irrigation & Drainage 6. Department of Labour 7. Department of Occupational Safety & Health 8. Department of Orang Asli Affairs 9. Department of Wildlife & National Parks
Government Agencies - State (by emails) 10. Department of Environment - Selangor 11. Department of Forestry - Selangor 12. Department of Immigration – Selangor 13. Department of Irrigation & Drainage - Selangor 14. Department of Labour – Selangor 15. Department of Occupational Safety & Health – Selangor 16. Department of Wildlife & National Parks – Selangor 17. Land and Mines Office – Selangor 18. Pertubuhan Keselamatan Sosial (SOCSO) – Selangor
Statutory Bodies (by emails) 19. Malaysian Palm Oil Board (MPOB)
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20. Malaysian Palm Oil Board (MPOB) - Central Region 21. Malaysia Palm Oil Association (MPOA)
NGOs (by emails) 22. All Women’s Action Society (AWAM) 23. BCSDM - Business Council for Sustainable Development in Malaysia 24. Borneo Child Aid Society (Humana) 25. Borneo Resources Institute Malaysia (BRIMAS) 26. Borneo Rhino Alliance (BORA) 27. Center for Orang Asli Concerns COAC 28. Centre for Environment; Technology and Development; Malaysia - CETDEM 29. Consumers Association of Penang - CAP 30. EcoKnights 31. ENO Asia Environment 32. Environmental Management and Research Association of Malaysia (ENSEARCH) 33. Environmental Protection Society Malaysia (EPSM) 34. Friends of the Earth; Malaysia 35. Future in Our Hands Society; Malaysia 36. Global Environment Centre 37. Institute of Foresters; Malaysia (IRIM) 38. JUST - International Movement for a Just World 39. Malaysian CropLife & Public Health Association (MCPA) 40. Malaysian Environmental NGOs - MENGO 41. Malaysian National Animal Welfare Foundation - MNAWF 42. Malaysian Plant Protection Society (MAPPS) 43. National Council of Welfare & Social Development Malaysia - NCWSDM 44. National Union of Plantation Workers (NUPW) 45. Partners of Community Organisations (PACOS) 46. Pesticide Action Network Asia and the Pacific (PAN AP) 47. Proforest - South East Asia Regional Office 48. Sabah Wetlands Conservation Society (SWCS) 49. SUARAM - Suara Rakyat Malaysia 50. SUHAKAM - National Human Rights Society - Persatuan Kebangsaan Hak Asasi Manusia 51. Sustainable Development Network Malaysia (SUSDEN) 52. Tenaganita Sdn Bhd 53. The Malaysian Forum of Environmental Journalist (MFEJ) 54. TRAFFIC - The Wildlife Trade monitoring network 55. TRAFFIC Southeast Asia - Wildlife trade & trafficking monitoring programme 56. Transparency International - Malaysian Chapter 57. Treat Every Environment Special Sdn Bhd. (TrEES) 58. UNION - AMESU 59. United Nations Development Programme - UNDP Malaysia 60. Wetlands International (Malaysia) 61. Wild Asia Sdn Bhd 62. World Wide Fund for Nature (WWF) Malaysia
Local community (On-site interviews) 63. Gender representatives 64. Workers representatives 65. Suppliers / Contractors representatives 66. Village Heads & representatives
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3.0 ASSESSMENT FINDINGS
3.1 Summary of findings
Principle 1: Commitment to transparency
Criterion 1.1 Growers and millers provide adequate information to relevant stakeholders on environmental, social and legal issues relevant to RSPO Criteria, in appropriate languages and forms to allow for effective participation in decision making. Indicators Findings and Objective Evidence Compliance 1.1.1 There shall be The PMU has established and implemented a documented procedure Complied evidence that growers and millers provide ML-1A/L2-PR3 (0) dated May 2014 for providing adequate information adequate information on environmental, social and legal issues relevant to RSPO Criteria to upon request for relevant stakeholders for effective participation in decision making. information on Date of public notification of the main assessment of the PMU was (environmental, social made on 07 Aug 2015. and/or legal) issues relevant to RSPO Criteria No request for information from stakeholders for this PMU. to relevant stakeholders for effective participation in decision making. Minor Compliance
1.1.2 Records of requests The PMU maintained a site specific list (ML-1A/L4-F31 (0)) of internal Complied for information and responses shall be stakeholders, external stakeholders, government maintained. departments/agencies, consultants, contractors, suppliers, transporters, etc. Major Compliance The list of stakeholders is to be updated whenever necessary. A Stakeholders’ Consultation with external stakeholders for the PMU was carried out on 18/04/2014 and has been verified during the Main Assessment with records of stakeholders’ feedback maintained (positive and negative) and management action plan recorded in the Stakeholders’ Booklet 2014. Four negative feedback, viz., additional activities for living costs, cultural and religious values, community values deteriorate, replanting problems caused by subcontractors The PMU maintained records of visits, inspections, minutes of meetings, attendance notes and correspondence with stakeholders such as DOSH (JKKP), DOE (JAS), BOMBA, KSEB (TNB subsidiary), MPOB and Energy Commission (“Suruhanjaya Tenaga”), security service provider, smallholders, employee consultative committees and local community leaders. The smallholders in the FELDA Settlers’ Scheme have agreements with FELDA. Copies of land title of smallholders with user rights verified to be in order in the estates. Evidence of training in IPM and safe use of agrochemicals for smallholders. Following documents provided for smallholders: • Health and safety plan. • Plans and impact assessments relating to environmental and social impacts • Pollution prevention plans. • Details of complaints and grievances • Negotiation procedures.
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• Procedure for calculating prices, and for grading, FFB • Continuous improvement plan • Public summary of certification assessment report. Meetings between FELDA/ FTP and smallholders. Contracts are available between FTP and subcontractors hiring foreign workers in the estates. Meetings between POM and scheme smallholders’ representatives on oil extraction rate, quality of FFB and value. OCP applied to POM for approval to supply FFB to the mill. Criterion 1.2 Management documents are publicly available, except where this is prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes. Indicators Findings and Objective Evidence Compliance 1.2.1 Management The organization’s policies declared that upon request, the following Complied documents that are made available to the public types of mandatory documents are available to the public: shall include, but are not • land titles/user rights, necessarily limited to: • occupational health and safety plan, Major Compliance • plans and impact assessments relating to environment and social
impacts, • pollution prevention plans, • details of complaints & grievances, • negotiation procedures • continuous improvement plan • Public summary of certification assessment report. • Human Rights Policy. These publicly available documents include key indicators of performance like waste management and disposal plans for the mill and estates. Also, Continual Improvement Action Plans include targets for waste reduction and pollution prevention.
• Land titles/user rights Copies of all land titles were available and have been maintained at the (Criterion 2.2); POM and Estates. HQ kept the original copies. • Occupational health and Detailed Occupational Safety and Health Plan [ML-1A/L4-F2 (0)] Complied safety plans (Criterion established and documented had been reviewed and up-dated. 4.7); Policy and HIRAC documented for both mill and estates. The HIRAC was also reviewed for the POM and estates. The OSH Plan include the establishment and implementation of CHRA, medical surveillance, Fire Drill training, First Aid training, audiometric test, PPE training, chemical store management training and emergency rescue. CHRA conducted by an external consultant, OSHE Global Solutions with report dated 20/11/2013. Content of the report includes the following: • Fertilizers application, pesticides application and maintenance works. • CHRA Methodology • Collection of information • Evaluation of risks, hazard levels, exposure levels and control measures
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• Summary of recommendations POM is certified to OSHA 18001. POM has conducted the Emergency Preparedness (ERP). Safety Committee meetings held. Programmes for protecting workers’ health and safety were satisfactorily implemented. • Plans and impact Environmental aspect and impact assessment conducted for the POM Complied assessments relating to and estates and its action plan documented and implemented. (Refer to environmental and social 5.1.1) impacts Social Impact Assessment carried out. Positive and negative impacts (Criteria 5.1, 6.1, 7.1 and 7.8); and action plan documented. (Refer to 6.1.1) • HCV documentation Procedure Guidelines ML-1A/L3-GPS (0) for identification of HCV. Complied (Criteria 5.2 and 7.3); HCV Identification Survey conducted on the PMU estates by Jabatan PSQM of FGVPM and documented in a report dated 06/08/2014. No significant HCV area found in the PMU except for the part of the boundary of Gedangsa, Soeharto and Sg. Tengi estates bordering the Ulu Bernam Forest Reserve. Conservation areas are the streams/rivers Sungai Rambai and Sungai Dusun in Sg. Tengi and Soeharto estates respectively. Management Plan and Action Plan documented for HCV area and biodiversity in all the estates with specific actions to be taken by the Estate Manager / Assistant Manager. Inventory of RTE species to be updated on annual basis. (Refer to 5.2.1). • Pollution prevention and Documented pollution prevention and reduction plans include measures Complied reduction plans (Criterion for pollution control (smoke emission, POME / effluent discharge), 5.6); pesticides reduction, schedule wastes (chemicals, drums, tyres, used PPE, hydraulic oil) and organic/domestic wastes disposal, reuse and recycling (paper, glass, scrap iron). (Refer to 5.6.1). • Details of complaints The PMU has established and implemented a documented procedure Complied and grievances (Criterion ML-1A/L2-PR4 (0) dated Mar 2012 for complaints and grievances. 6.3); As to date, the PMU has not received any complaints from external stakeholders. There is also Complaints Box provided in the mill and estates with a Complaints and Grievances Form for recording any complaints/ grievances. A Complaint Book (“Buku Aduan”) is also maintained in the POM and estates. Logbook entries for the period concerned found to be complaints from employees and settlers relating to landslide into drains in front of house, wrong location for name signboard, a settler did not receive payment and “bonus raya”, non-collection of rubbish by subcontractor, etc. Actions found to be taken to address the complaints and recorded in the Complaints Book. (Refer to 6.3.1) • Negotiation procedures The PMU has established a documented negotiation procedure ML- Complied (Criterion 6.4); 1A/L2-PR1 (0) dated Mar 2012. No case of land claims in the PMU.
• Continual improvement The PMU has identified, documented and implemented Continuous Complied plans (Criterion 8.1); Improvement Plans over the period 2014 to 2016 (ML-1A/L2-PR11 (0), dated Mar 2012). (Refer to 8.1.1.) • Public summary of Public summary of certification assessment reports are available from Complied certification assessment the company upon request. report;
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• Human Rights Policy The Human Rights Policy (“Polisi Hak Asasi Manusia”) has been Complied (Criterion 6.13). documented and signed by the President and CEO of Felda Global Ventures and the MD of FELDA on 01/06/2014. The Policy had been communicated to all levels of the workforce and operations. Copies of the policy found to be displayed at prominent locations in the POM and estates. Criterion 1.3 Growers and millers commit to ethical conduct in all business operations and transactions. Indicators Findings and Objective Evidence Compliance 1.3.1 There shall be a The Policy of commitment to a Code of Ethical Conduct and Integrity Complied written policy committing has been documented and signed by the President and CEO of Felda to a code of ethical conduct and integrity Global Ventures and the MD of FELDA on 01/06/2014. The Policy had in all operations and been communicated to all levels of the workforce and operations. transactions, which shall Copies of the policy found to be displayed at prominent locations in the be documented and POM and estates. communicated to all There is a booklet containing details of Service Terms and Conditions levels of the workforce and operations. and Code of Ethical Conduct and Integrity for Employees of Felda Group of Companies. Minor Compliance
Principle 2: Compliance with applicable laws and regulations Criterion 2.1 There is compliance with all applicable local, national and ratified international laws and regulations. Indicators Findings and Objective Evidence Compliance 2.1.1 Evidence of A Register of Legal and Other Requirements covering the applicable Complied compliance with relevant local and international laws and regulations has been compiled for the legal requirements shall mill and estates. A Compliance Checklist is used by the mill and be available. estates for verification of compliance with legal requirements. The Major Compliance relevant laws and legislations identified and listed cover safety and health, environment, pollution management, chemical handling, usage & storage, schedule waste management, labour laws, Unions, EPF, SOCSO, Housing and Amenities. There were no cases of any violation or actions imposed by relevant authorities. Statutory returns to relevant authorities found to be in compliance. Based on the site observations, interviews and records checking at the POM and estates, there were evidences of compliance with the relevant laws, regulations, local and international laws. Licenses and permits (License for Foreign Workers Employment, Workers Wages Deduction Permit, License for Controlled Items – Diesel and Fertilizer, MPOB license, DOSH Certificate, DOE license, BOMBA Fire Certificate, Energy Commission License, etc.) were monitored for their expiry dates and found to be renewed and valid. Environmental Quality Act 1974 and Environmental Quality (Scheduled Wastes) Regulations 2005: Scheduled wastes such as hydraulic and used motor oils, rags, empty chemical and lubricants containers collected at six monthly intervals by DOE licensed contractor. Weight and Measures Act 1972, regulations 16, 28A, 45): Weighbridges were duly calibrated. Factory and Machinery Act 1967, Regulations 1970: Steam engineers (Grade 1 and 2), boilermen and electricians were noted to be with valid certificates from relevant authorities (DOSH and Energy Commission).
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The POM has maintained a boiler register that indicate the date of commission, cleaned, inspected, tested or repaired. Valid certificates of fitness for boilers, sterilizers, air receivers, thermal deaerator, steam separator, vacuum oil dryer, etc. issued by DOSH. Valid license for diesel generators issued by Energy Commission (“Suruhanjaya Tenaga”). Valid licenses for authorized gas tester (ACT), authorized entrant and standby by person for confined space activities in POM. Occupational Health and Safety Act 1994 – safety and health meetings to be conducted at quarterly intervals. Noise Monitoring Report is available. The POM is certified by SIRIM for its Quality, Environment and Safety & Health Management Systems. Legal documents (work permits, passports) and insurance coverage are available for foreign workers employed in the estates. There are no foreign workers employed in the POM. Statutory returns to relevant authorities found to be in compliance.
2.1.2 The PMU has established and implemented a documented procedure Complied A documented system, ML-1A/L2-PR2 (0) dated Mar 2012 for identifying, determining, which includes written reviewing and updating applicable legal and other requirements. information on legal It included the listing of laws and regulations that were being monitored requirements, shall be maintained. for changes and reference. Minor Compliance 2.1.3 The procedure includes a monitoring mechanism of a regular check and Complied A mechanism for evaluation for compliance against the applicable laws in the Legal ensuring compliance shall Register. Monitoring mechanism was done through a yearly evaluation be implemented. check against the items in the Legal Register. The POM and the Minor Compliance estates have carried out the evaluation for ensuring compliance by completion of the Compliance Checklist.
2.1.4 A system for Tracking of changes in the relevant laws are communicated and Complied tracking any changes in received from HQ. Monitoring of changes to the applicable laws and the law shall be regulations carried out through periodical review in accordance with the implemented. documented procedure ML-1A/L2-PR2 (0) dated Mar 2012. Minor Compliance Criterion 2.2 The right to use the land is demonstrated, and is not legitimately contested by local people who can demonstrate that they have legal, customary or user rights. Indicators Findings and Objective Evidence Compliance 2.2.1 Documents showing Copies of the land titles of the mill and estates were maintained and Complied legal ownership or lease, history of land tenure found to be in proper order. (confirmation from Records are available to show that the land lease comply with legal community leaders based requirements and does not infringe on any legal rights that require free, on history of customary prior and informed consent (FPIC). land tenure, recognised Native Customary Right The original copies are maintained by the Corporate Head office. The (NCR) land) and the legal use of the land confirmed to be for cultivation of oil palm and actual legal use of the agricultural use. land shall be available. FELDA and FTP have provided evidence of legal ownership of the land Major Compliance of the smallholders.
2.2.2 There is evidence It was verified that there has been no change to the stated land titles Complied that physical markers are located and visibly and designated use for cultivation of oil palm and agricultural use.
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Report No.: R9297 /14 -2 Felda Global Ventures Plantations (Malaysia) Sdn Bhd Page 18 of 80 KKS Sg. Tengi Grouping: ASA-01 maintained along the Legal boundary markers were sighted and maintained along the legal boundaries perimeters of estate lands which were mapped with a 1-meter particularly adjacent to differential Global Positioning System (GPS). Land survey maps with state land, NCR land and boundaries of each settler marked on the map. reserves. Minor Compliance Locations of boundary stones / markers identified. Locations of several boundary stones and pole markers verified to be within the boundary
parameters of the estates. Maps provided by all the estates are satisfactory. Thus the corrective action taken on previous assessment Major NC# OCL-01 verified to be effective. 2.2.3 Where there are or There has been no dispute on the land rights in the PMU. Complied have been disputes, additional proof of legal As such, the process of fair compensation and FPIC is currently not acquisition of title and applied for this PMU. evidence that fair compensation has been made to previous owners and occupants shall be available, and that these have been accepted with free, prior and informed consent (FPIC). Minor Compliance
2.2.4 There shall be an There is a documented procedure ML-1A/L2-PR 12 (0) dated Mar 2012 Complied absence of significant for handling and response to land disputes and customary rights. land conflict, unless requirements for Procedure ML-1A/L2-PR 13 (0) dated Mar 2012 documented for acceptable conflict calculation and distribution of compensation. resolution processes (see Procedure ML-1A/L2-PR 1 (0) dated Mar 2012 documented for Criteria 6.3 and 6.4) are negotiation. implemented and accepted by the parties involved. Major Compliance
2.2.5 For any conflict or No land disputes in the PMU. As such the process of participatory Complied dispute over the land, the mapping is not applicable for verification of implementation. extent of the disputed area shall be mapped out in a participatory way with involvement of affected parties (including neighbouring communities and relevant authorities where applicable). Minor Compliance
2.2.6 To avoid escalation No evidence that the palm oil operations have instigated violence in Complied of conflict, there shall be maintaining peace and order in their current and planned operations. no evidence that palm oil operations have instigated violence in maintaining peace and order in their current and planned operations. Major Compliance Criterion 2.3
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Use of the land for oil palm does not diminish the legal, customary or user rights of other users without their free, prior and informed consent. Indicators Findings and Objective Evidence Compliance 2.3.1 Maps of an Land title for POM land and smallholders verified to be in order. Complied appropriate scale The lands are not encumbered by any customary lands or user rights showing the extent of and therefore the process of participatory mapping is not required. recognised legal, customary or user rights (Criteria 2.2, 7.5 and 7.6) shall be developed through participatory mapping involving affected parties (including neighbouring communities where applicable, and relevant authorities). Major Compliance 2.3.2 Copies of The smallholders’ lands are for oil palm cultivation or agriculture use. Complied negotiated agreements Records are available to show that the land lease comply with legal detailing the process of requirements and does not infringe on any legal rights that require free, free, prior and informed prior and informed consent (FPIC). consent (FPIC) (Criteria 2.2, 7.5 and 7.6) shall be available and shall include: a) Evidence that a plan has been developed through consultation and discussion with all affected groups in the communities, and that information has been provided to all affected groups, including information on the steps that shall be taken to involve them in decision making; b) Evidence that the company has respected communities’ decisions to give or withhold their consent to the operation at the time that this decision was taken; c) Evidence that the legal, economic, environmental and social implications for permitting operations on their land have been understood and accepted by affected communities, including the implications for the legal status of their land at the expiry of the company’s title, concession or lease on the land. Minor Compliance 2.3.3 All relevant No cases of land claims in this PMU. Not applicable information shall be As such this process is not applicable for verification. available in appropriate forms and languages,
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including assessments of impacts, proposed benefit sharing, and legal arrangements. Minor Compliance 2.3.4 Evidence shall be This process is not applicable during current assessment. Not applicable available to show that communities are represented through institutions or representatives of their own choosing, including legal counsel. Major Compliance
Principle 3: Commitment to long-term Economic & Financial Viability Criterion 3.1 There is an implemented management plan that aims to achieve long-term economic and financial viability. Indicators Findings and Objective Evidence Compliance 3.1.1 A business or Palm Oil Mill has documented a 5 years (2015 to 2019) Management Complied management plan Plan with details of budget and costs of operation that include the (minimum three years) following: shall be documented that includes, where (1) Mill extraction rates = OER and KER trends; appropriate, a business (2) Cost of Production = Cost/MT CPO trends; case for scheme smallholders. (3) Forecast prices; Major Compliance (4) Financial indicators = Cost of labour & services, cost of supplies and equipment, depreciation costs, salary costs, management costs, cost of materials, etc.). The estates have documented a 3 years (2016 to 2018) Management Plan with details of budget and costs of operation that include the following: (1) Replanting program (planting materials are DxP seedling and cloned seedling; (2) Crop projection = FFB yield/ha trends; (3) Cost of Production = Cost/MT FFB trends; (4) Forecast prices; (5) Financial indicators = Cost of labour, cost of facilities, cost of materials, etc.). Crop and operation budget cover weeding, manuring, harvesting, collection and transporting, pruning, drains and roads. The budgets also include provisions for sustainability efforts and improvement programmes (environmental aspects on road maintenance, domestic waste collection, maintenance of buffer zones). Mill and Estate Managers monitor the operational performance against Key Performance Indications and targets (costs, FFB yields, quality, productivity, pesticides usage, fertilizers usage, etc). There is evidence of monitoring of costs against budget to achieve specified targets. Performances are discussed in the monthly meetings held at the PMU and issues and actions needed are recorded for follow up in the next monthly meeting. The records of these meetings were available and verified during the audit.
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Monthly, quarterly, half-yearly and yearly reports are submitted to the GM of Zone/Wilayah. FELDA and FTP have a documented two years’ management plan for the smallholders. 3.1.2 An annual Replanting Program for estates in the PMU sighted. Evidence of the Complied replanting programme replanting program planned, reviewed and on-going implementation projected for a minimum carried out. of five years (but longer where necessary to Replanting program for each of the estates as follows. reflect the management 2015 2016 2017 2018 2019 2020 of fragile soils, see Soeharto (ha) 0 339.48 0 423.98 667.7 249.39 Criterion 4.3), with yearly review, shall be available. Sg. Tengi (ha) 0 596.28 0 0 0 0 Minor Compliance Evidence of replanting program planned, reviewed and on-going implementation carried out.
Principle 4: Use of appropriate best practices by growers and millers
Criteria 4.1 Operating procedures are appropriately documented, consistently implemented and monitored. Indicators Findings and Objective Evidence Compliance 4.1.1 Standard Operating POM has documented the following SOPs: Complied Procedures (SOPs) for 1. Palm Oil Mill Operation Manual (08/04/2010 and amendments) estates and mills shall be covering every station from the security gate for reception of FFB until documented. the delivery of processed oil and POME management. Major Compliance 2. Laboratory Operation Manual (28/04/2011 and amendments). 3. Quality, Environmental and Occupational Health & Safety Manual and Procedures of Palm Oil Mill (24/02/2010 and amendments). The SOP for pollution prevention includes measuring and monitoring mill effluents and waste disposal / recycling. 4. Procedure for Safe Work and Management of Safety and Health for Workers (14/07/2010 and amendments) - The SOP for safe working practices in the POM includes hazards identification, risk assessment and control measures. The hazards include noise, chemicals, heat, fire, fuel spillage, working at heights, working in enclosed space, hot work, lightning, electrocution, machinery, etc. Control measures include the use of PPE, fire drill training, first aid training, etc. and “permit to work system” for the mill. Records of ‘Permit to Work’ including gas entry and stand-by permits issued by NIOSH to the competent personnel at the POM was verified to be maintained and found to be in order. 5. Supply Chain Procedure (SOP Perkilangan untuk Pematuhan Sistem Pensijilan RSPO SCC – Mass Balance, Doc No. FGVPM-RSPO SCCS Issue 2.0 Rev 1.0, dated on 21 Mar 2015) has been established properly. SOP for Mill RSPO Supply Chain Certification System using the Mass Balance (MB) module.
The estates have the following SOPs: 1. Sustainable Oil Palm Estate Operation Manual issued by FELDA Agricultural Services Sdn. Bhd (FASSB) 2nd Edition on 01/06/2012. The manual describes operational procedure of nursery practices, land preparation, planting practices, ground cover maintenance, roads, immature stage, harvesting, collection of bunches, manuring, pesticide application, pests & diseases control. The SOP for pesticides specifies safe working practices and application of pesticides. It includes annual medical surveillance for pesticides operators. 2. SOP for riparian zone management with specified buffer zones.
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3. Manual of Health and Safety and Environmental, issue 01, dated 01 Jul 2009.
Relevant Key Performance Indicators (KPIs) specified for quality, environment, safety and cost control.
4.1.2 A mechanism to There is a mechanism to check the implementation of the SOPs. Complied check consistent implementation of Records had been kept by the staff concerned for each operation to procedures shall be in monitor the procedure and progress of work and these records would be checked by the Assistant Manager and the Manager regularly. place. Minor Compliance These records had been verified to indicate satisfactory implementation during the visit. The master list of all SOP is available properly. The list has covered No, Title of SOP, document No and revision status. Oil Mill has been certified against ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 by Sirim QAS and valid till 05 Nov 2015. Internal audit has been conducted to ensure the implementation of SOPs such as Internal audit for Plantation Felda Soeharto estate on 27 Mar 2015 and 17 Jun 2015 for Felda Sungai Tengi estate. 4.1.3 Records of Records of monitoring and actions taken had been maintained for more Complied monitoring and any actions taken shall be than 12 months at the mill and estates. Overall, these records verified maintained and available, to be satisfactory. as appropriate. Daily Muster chits were available at estates. Minor Compliance During field visit at the Soeharto estate, the records (06 Oct 2015) for fertilizing has indicated the fertilizer NPK, doses=2.5 kg/tree used for Phase (Peringkat)-1, Block 24. During field visit at the Sungai Tengi estate, the records (07 Oct 2015) for harvesting has indicated the area harvested for Phase (Peringkat)-2, block 5.
4.1.4 The mill shall record The POM maintained records on the origins of all third-party sourced Complied the origins of all third- party sourced Fresh Fruit Fresh Fruit Bunches (FFB), and it had been verified to be satisfactory Bunches (FFB). such as Record of FFB (outside crops) receiving from Jan till Sep Major Compliance 2015. It had been verified from the records that the mill received FFB from estates of the PMU and outside crops from OCPs. Criteria 4.2 Practices maintain soil fertility at, or where possible improve soil fertility to, a level that ensures optimal and sustained yield. Indicators Findings and Objective Evidence Compliance 4.2.1 There shall be GAP for minimization of soil erosion and maintenance of soil fertility is Complied evidence that good maintained via the frond stacking and fertilizer application as per the agriculture practices, as contained in Standard recommendation provided by the Agronomist from Felda Agricultural Operating Procedures Advisory Services Sdn. Bhd. (FASSB). (SOPs), are followed to These had been verified through the records for fertilizer application manage soil fertility to a and observation during field visit such as Soeharto and Sungai Tengi level that ensures optimal estates. Evidences provided were verified as following good and sustained yield, where possible. agricultural practices. Minor Compliance Soil sampling and leaf sampling records provided guide for the fertilizer application and all recommendations had been properly followed at estate levels. Noted that proper herbicide spraying had also been done. 4.2.2 Records of fertiliser Records of fertilizer application have been verified to be in order such Complied inputs shall be maintained. as Fertilizer Activity dated 06 Oct 2015 for Phase (Peringkat)-1, Block
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Minor Compliance 24, number of tree = 2,800, crop year = 2000 with fertilizer is NPK, doses= 2.5 kg/tree. Also for Sungai Tengi estate from Aug –Sep 2015 (round 5) for Phase (Peringkat)-2 Block 5, number of tree = 4,378 tree, crop year = 1994 with fertilizer = NK 27, doses = 2 kg per tree. 4.2.3 There shall be Leaf and soil sampling and analysis had been carried out annually to Complied evidence of periodic tissue and soil sampling determine the nutrient levels. to monitor changes in Fertilizer recommendations by the Agronomist for identified estate nutrient status. blocks to sustain the long term soil fertility and nutrient efficiency. Minor Compliance Records of the sampling and analysis had been verified to be satisfactory. The latest test for leaf and soil has been conducted on 09- 11 Feb 2015 for Soeharto estate and on 12 Mar 2014 for Sungai Tengi estate by Felda Central Laboratory. 4.2.4 A nutrient recycling EFB mulching had been carried out in mature area along the inter-row, Complied strategy shall be in place, and may include use of and around the circle in the immature palms. Records verified to be Empty Fruit Bunches satisfactory. (EFB), Palm Oil Mill There is no application of POME in the estates. The mill has installed a Effluent (POME), and biogas plant to produce methane gas from POME. The methane gas is palm residues. used for the generation of electricity or bottled for sale. Minor Compliance
Criteria 4.3 Practices minimise and control erosion and degradation of soils. Indicators Findings and Objective Evidence Compliance
4.3.1 Maps of any Estate soils show no fragile or marginal soil existence. Soils are Complied fragile/marginal soils shall serdang and bungor series in Soeharto estate and bungor series in be available. Major Compliance Sungai Tengi estate.
4.3.2 A management Planting terraces constructed on land with slope more than 6 o. Records Complied strategy shall be in place for plantings on slopes and maps on terraces constructed had been verified on the estates. between 9 and 25 The PMU has a SOP (Best Management Practices) for erosion control degrees unless specified during replanting or any activities involving earth disturbance. Steps otherwise by the taken for erosion control are soil stabilization, run-off control and company’s SOP. sediment trapping to mitigate the disturbed earth entering waterways. Minor Compliance There was no soil erosion noted during the visit. Leguminous cover crop, macunabracteata was well established.
4.3.3 A road maintenance The main roads leading to the estates are maintained by the Public Complied programme shall be in place. Works Department (Government Department). Estate roads were Minor Compliance maintained in good and satisfactory condition. Road maintenance programme verified to be established and implemented as seen in the records. The latest road maintenance was conducted on 01 Jun 2015 for Soeharto estate and 01 Apr 2015 for Sungai Tengi estate.
4.3.4 Subsidence of peat It was confirmed during the assessment on site that there is no peat soil Not Applicable soils shall be minimised and monitored. A on the estates. documented water and ground cover management programme shall be in place. Major Compliance
4.3.5 Drainability There was no peat soil on the estates as confirmed by auditor’s on-site Not Applicable assessments where necessary will be assessment conducted prior to
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Report No.: R9297 /14 -2 Felda Global Ventures Plantations (Malaysia) Sdn Bhd Page 24 of 80 KKS Sg. Tengi Grouping: ASA-01 replanting on peat to determine the long-term viability of the necessary drainage for oil palm growing. Minor Compliance
4.3.6 A management Based on the estate soil maps and visits to the estates, there were no Complied strategy shall be in place for other fragile and other fragile and problematic soils on these estates. problem soils (e.g. podzols and acid sulphate soils). Minor Compliance
Criteria 4.4 Practices maintain the quality and availability of surface and ground water. Indicators Findings and Objective Evidence Compliance
4.4.1 An implemented Documented water management plan verified to be in place for the Complied water management plan shall be in place. palm oil mill and estates. The plan includes steps such as soil Minor Compliance stabilization, run-off control and sediment trapping to mitigate the disturbed earth entering waterways (streams/rivers in Sg. Tengi and Soeharto estates). There is no streams/rivers in Sg. Tengi Selatan and Gedangsa estates. Water samples were taken at six-monthly interval at the final discharge point of the palm oil mill effluent pond and at upstream and downstream of waterways. Tests conducted for pH, BOD, COD, Total Solids, Suspended Solids, Oil & Grease, Ammoniacal Nitrogen and Total Nitrogen. Analysis results meet the DOE requirements. The latest test was conducted on 02 Sep 2015 by Makmal Analisa Bukit Goh, Pahang (accredited laboratory No: 247). The test results complied with DOE requirements. The water supply for domestic use to staff and workers’ housing is piped water from the water treatment plant operated by the water utility company. It is a requirement for the water utility company to ensure that tests are carried out on parameters to meet the Ministry of Health Specification for Drinking Water Quality. The latest internal tests conducted on 30 Sep 2015 for hardness and pH. Rainfall data found to be monitored as part of the water management plan. 4.4.2 Protection of water Appropriate signages were placed with demarcation of buffer zone courses and wetlands, including maintaining and area. Workers are aware of the non-usage of chemicals within the buffer zone. No evidence of spraying around palms marked as restoring appropriate riparian and other buffer boundary for the buffer zones. However, there were insufficient zones (refer to national signages to denote the specific prohibited activities for the buffer best practice and national zones in the estates. An observation was raised. OBS # OCL-01 guidelines) shall be There was no construction of bunds/ weirs/dams across the main rivers demonstrated. Major Compliance or waterways passing through the estates.
4.4.3 Appropriate The water at the final discharge point of the palm oil mill effluent pond Complied treatment of mill effluent was analyzed at monthly intervals for pH, BOD, COD, Total Solids, to required levels and Suspended Solids, oil & grease, Ammoniacal Nitrogen and Total regular monitoring of Nitrogen. Analysis results meet the DOE requirements. discharge quality, shall be in compliance with BOD levels had been in the range of 21 to 66 ppm for the period Jan - national regulations Aug 2015 with an average of 35.4 ppm. The current allowable upper (Criteria 2.1 and 5.6). limit specified by D.O.E. is < 100 ppm. Minor Compliance
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4.4.4 Mill water use per Water sources come from river (Sungai Tengi) and go through water Not Complied tonne of Fresh Fruit Bunches (FFB) (see treatment prior to use. This water has been used for both of company’s Criterion 5.6) shall be housing and Oil Mill processing. Flow meter has been utilized to monitored. measure the quantity of water usage. Minor Compliance Based on Sep 2015 report, the water usage averaged at 1.0 m 3/ton FFB, which is within the industry norm. Criteria 4.5 Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest Management techniques. Indicators Findings and Objective Evidence Compliance
4.5.1 Implementation of IPM Plan includes the planting of beneficial plants and control of Complied Integrated Pest Management (IPM) plans damage by rodents. Beneficial plants such as Turnera subulata are shall be monitored. grown in the estates. Records of planting of new areas and Major Compliance maintenance of existing areas of beneficial plants and location maps are available. Records of rat baiting and barn owl census are available. There are 11 owl boxes at Soeharto estate and 7 owl boxes at Sungai Tengi estate that were monitored twice a year. The latest census has been conducted on 02 Jun 2015 for Soeharto estate and on 26 Jun 2015 for Sungai Tengi estate. It was reported that there are bagworm attacks in certain blocks of Soeharto estate. Treatment has been applied to minimize or eliminate this pest by injecting Monocrotophos into the affected palm oil trees. Latest treatment was on 30 Jun 2015. The result significantly minimize the population of bagworms. Record of treatment has been maintained properly. So far, there is no bagworm attack reported at Sungai Tengi estate. Monitoring record on the populations of rats such as “Detail of rats attacking to Palm Oil Tree” record on 28 Sep 2015 at Sungai Tengi estate. The average rat attacking was 3% whereas the standard is maximum 5% according to Sustainable Oil Palm Estate Operation Manual issued by FELDA Agricultural Services Sdn Bhd (FASSB) 2nd Edition on 01/06/2012 section 1.0 relating to “Rat Baiting in the Palm Oil Tree”.
4.5.2 Training of those IPM training conducted by for all those involved in IPM implementation. Complied involved in IPM implementation shall be Training records for staff and workers on IPM implementation were demonstrated. available and was verified on-site to be satisfactory during field Minor Compliance assessment such as IPM training on 06 Mar 2015. Training also conducted by FELDA/FTP for all smallholders.
Criteria 4.6 Pesticides are used in ways that do not endanger health or the environment. Indicators Findings and Objective Evidence Compliance
4.6.1 Justification of all Manual Lestari 1A – Doc. No. ML-1A/L3-GP 1 (0) dated Mar 2012 Complied pesticides used shall be demonstrated. The use of Guidance Procedure for written justification in the use of agrochemicals selective products that had been reviewed and found acceptable. are specific to the target The PMU has an Approved List of Pesticides registered under the pest, weed or disease Pesticide Board of Malaysia. The types of chemicals used are as and which have minimal follows: effect on non-target (1) Glyphosate isopropyl amine (41% a.i.) species shall be used where available. (2) Metsulfuron methyl (20% a.i.) Major Compliance (3) Paraquat dichloride (13% a.i.) (4) Triclopyrbutoxy ethyl ester (32.1% a.i.) (5) Glufosinate ammonium (13.5% a.i.)
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Specific pesticides had been used to deal with the respective target pest, weed, or disease. Paraquat Dichloride at 13% is used strictly for road side VOPS (voluntarily grown oil palm seedlings).
4.6.2 Records of Records of pesticides and their active ingredients used, LD50, area Complied pesticides use (including active ingredients used treated, amount of i.e. applied per ha, and number of applications had and their LD50, area been maintained and kept for a minimum of 5 years. Verified that treated, amount of active records of monitoring were satisfactorily. ingredients applied per ha The chemical treatment is conducted minimum three times a year. The and number of latest treatment was on 19 May 2015 for a total area of 428.98 ha for applications) shall be Soeharto estate and on 28 Jun 2015 for a total area of 478.00 ha for provided. Major Compliance Sungai Tengi estate. The record of pesticide usage has covered for smallholders as well. Records of application of pesticides by the FELDA Smallholders are available. Thus, the corrective action taken on previous assessment Major NC# OCL-02 verified to be effective.
4.6.3 Any use of It had been the policy of the estates to minimize the use of pesticides in Complied pesticides shall be accordance with IPM plan. minimised as part of a plan, and in accordance The pesticide reduction program is monitored on usage per hectare with Integrated Pest basis. Overall, there has been a decline in pesticide usage per hectare Management (IPM) plans. on a year to year basis. There shall be no No prophylactic use of pesticides had been carried out at the estates for prophylactic use of the period concerned. pesticides, except in specific situations identified in industry’s Best Practice. Major Compliance
4.6.4 Pesticides that are It is the policy of the group to reduce the use of Paraquat gradually and Complied categorised as World Health Organisation achieve zero usage by the end of 2017. Class 1A or 1B, or that Under special permitted conditions, the estate managers are allowed to are listed by the issue the use of paraquat for selective spraying. The control and Stockholm or Rotterdam records of usage was verified. Records on the usage of paraquat over Conventions, and 5 years were examined and it was found that there has been a decline paraquat, are not used, in the amount of paraquat used. except in specific situations identified in industry’s Best Practice. The use of Highly Toxic Pesticides (HTP) such as paraquat was verified The use of such for compliance to Regulation 9 of the Pesticides Act 1974 and USECHH pesticides shall be 2000 regulations as follows: minimised and eliminated - Form II fot HTP used for recording the number of hours of as part of a plan, and exposure of pesticides operators to paraquat. shall only be used in - Paraquat kept in a secured store room under lock and key. exceptional - First Aid Kits found to be available during pesticides spraying circumstances. Pesticides th selected for use are those in the fields (4 Schedule). officially registered under - Portable signboard noted to be displayed at areas of spraying the Pesticides Act 1974 activity (5 th Schedule). (Act 149) and the relevant - License/permit to store and use paraquat. provision (Section 53A); and in accordance with USECHH Regulations (2000). Minor Compliance
4.6.5 Pesticides shall only All pesticide operators (including the contractor’s workers) have be handled, used or attended training on the safe handling and application of pesticides in applied by persons who compliance with Regulation 22 of the Pesticides Act 1974. have completed the necessary training and Appropriate safety and application equipment (safety boots, safety shall always be applied in helmets, rubber boots, cartridge masks, safety goggles, gloves, accordance with the overalls) have been provided and used by the pesticides operators.
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Report No.: R9297 /14 -2 Felda Global Ventures Plantations (Malaysia) Sdn Bhd Page 27 of 80 KKS Sg. Tengi Grouping: ASA-01 product label. Appropriate Programme and training records verified to be satisfactory. safety and application The training include spraying technique, precautions and symptoms of equipment shall be symptoms of toxic reactions such as skin disorders, rashes, mouth and provided and used. throat pain, breathing difficulties or nail problems. The latest training All precautions attached to the products shall be was conducted on 09 Jan 2015 for 15 participants at Soeharto estate properly observed, and on 16 Feb 2015 for 14 participants at Sungai Tengi estate. applied, and understood At the chemical store and mixing area at Soeharto estate, MSDS by workers (see Criterion for some chemicals such as Garlon Mix, Action 13SL (paraquat) 4.7). and Rondup Rainguard were not available. Major Compliance At the chemical store at Sungai Tengi estate, MSDS was not available for Butiks (rat bait). Major NC# It was found that chemical mixing area at Sungai Tengi estate is OCL-01 not appropriately designed with a secondary containment to prevent leaking chemical causing environmental contamination. Also, there is no shower unit for emergency purpose.
4.6.6 Storage of all Storage of pesticides found to be kept under lock and key and its use in Complied pesticides shall be accordance with the Occupational Safety and Health Laws and according to recognised Regulation 9 of the Pesticides Act 1974. best practices. All pesticide containers shall Used chemical containers were either reused as containers for spraying be properly disposed of solution. For disposal as scheduled waste, empty pesticide containers and not used for other are triple rinsed and pierced at the bottom. purposes (see Criterion 5.3). Pesticides shall be stored in accordance to the Occupational Safety and Health Act 1994 (Act 514) and Regulations and Orders, Pesticides Act 1974 (Act 149) and Regulations. Major Compliance
4.6.7 Application of Pesticides had been applied using the Best Management Practices that Complied pesticides shall be by minimize risk and impacts. The pesticide operators found to proven methods that understand the use of the right nozzle, spray drift, spray quality and minimise risk and run-off. Programme and training records verified to be satisfactory. impacts. Minor Compliance
4.6.8 Pesticides shall be It is the policy of the company not to carry out aerial application of Complied applied aerially only where there is pesticides. This policy has been followed by the PMU. documented justification. Communities shall be informed of impending aerial pesticide applications with all relevant information within reasonable time prior to application. Major Compliance
4.6.9 Evidence of The Annual Training Plan includes training on pesticides handling. All Complied continual training to new pesticides operators were trained before being assigned to work enhance knowledge and with pesticides. In addition, based upon training needs, the existing skills of employees and pesticide operators (including the contractor’s workers) attended associated smallholders on pesticide handling continual training to enhance their knowledge and skills on pesticides shall be demonstrated or handling. made available. (see Information and safety precautions on the pesticides displayed on the Criterion 4.8). notice board and next to the pesticides in the store. Minor Compliance
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4.6.10 Proper disposal of Scheduled waste of palm oil mill had been disposed of through a DOE Complied waste material, according to procedures that are licensed (Malik Family Resources Technology Sdn Bhd) Scheduled fully understood by Waste contractor. workers and managers Records of scheduled waste collection at the mill verified to be shall be demonstrated satisfactory. The latest collection was on 05 Nov 2014. (see Criterion 5.3). Minor Compliance Hazardous material waste has been sent back to related supplier.
4.6.11 Specific annual At both Soeharto and Sungai Tengi estates, the annual medical medical surveillance for surveillance has not been conducted for subcontractor’s workers Major NC# pesticide operators, and OCL-02 documented action to carrying out pesticide spraying. {Noted that a major non- treat related health conformance (Major NC# OCL-03) had been raised during the conditions, shall be previous assessment on the same matter, namely, no medical demonstrated. surveillance conducted for the subcontractor’s workers at Sg. Major Compliance Tengi Selatan Estate}.
Pesticides operators were interviewed during field visits and feedback received that they do not have any symptoms of toxic reactions such as skin disorders, rashes, mouth and throat pain, breathing difficulties or nail problems.
4.6.12 No work with Pesticide operators in the estates are all males. Verified from records, Complied pesticides shall be undertaken by pregnant field inspections and interviews that no pregnant or breast-feeding or breast-feeding women. woman had been offered work as pesticide operator. Major Compliance
Criteria 4.7 An occupational health and safety plan is documented, effectively communicated and implemented. Indicators Findings and Objective Evidence Compliance The occupational health Occupational Safety and Health (OSH) plan in compliance with OSH Complied and safety plan shall Act and Factory Machinery Act was documented and implemented. cover the following: OSH Policy found to be clearly displayed at POM and in the estates office. Adequate posters, regulations, newsletters were prominently 4.7.1 An occupational health and safety policy displayed on notice boards. Interviewed workers demonstrated shall be in place. An awareness towards occupational safety and health. occupational health and The Safety & Health Officer is in charge of safety and health planning, safety plan covering all operation & coordination. Mill/Assistant Mill Managers and Estate activities shall be Managers / Assistant Estate Managers are also directly involved. documented and implemented, and its effectiveness monitored. Major Compliance 4.7.2 All operations Risk assessment carried out on operations where health and safety is Complied where health and safety an issue in order to determine the significant hazards. Significant is an issue shall be risk hazards determined and documented include noise exposure, assessed, and pesticides/chemicals exposure, accident, fire. Procedures and actions procedures and actions shall be documented and implemented to mitigate the hazards. implemented to address There was an assessment of noise levels in the POM conducted by the identified issues. All NIOSH. The report dated 06 Nov 2012 identified the work areas with precautions attached to high noise levels, viz; boiler station, engine room (genset), Kernel plant products shall be properly and oil room where noise level exceeded 85 db. observed and applied to Mill management have taken steps to reduce the noise levels by more the workers. frequent lubrication of machinery, reducing the exposure time to high Major Compliance noise and mandatory use of PPE such as ear plugs and ear mufflers.
Annual audiometric test conducted for all mill staff and workers. The latest audiogram was carried out on 20 Mar 2015. The audiometric reports of some employees indicated as having hearing impairment and recommended to wear hearing protector. Next test will be in Mar 2016.
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Baseline audiogram and occupational and medical history records of workers maintained. The employees exposed to high noise levels were interviewed. The workers are aware of the danger of hearing loss due to prolonged exposure to high noise. The workers knew about the complaints process and mechanism available. “Permit to work” system applied at the POM such as for Sterilizer work on 04 Oct 2015. Staff and workers have been trained and certified by NIOSH for gas entrant and stand-by involving work in confined space. Examples are Mr. Ahmad Syakir with registration No: JKKP HIE 127/171-7(P37) valid till 17 Feb 2017. Appropriate PPE (safety boots, safety helmets, rubber boots, cartridge masks, safety goggles, gloves, overalls, ear plugs, ear mufflers) verified to be provided to and being used by the workers. Handover of PPE has been conducted and recorded properly such as hand over for Safety shoes on 08 Jul 2015 on behalf of Mr. Muhammad Sahiran Bin Safie and Mr. Mohd. Faishal Yusof.
Associated training provided to address safety and health issues. Warning signs sighted at high noise areas and ear plugs and ear mufflers to be worn. There are also warning signs to use other PPE in the Oil Mill area such as helmet, safety boots/shoes, gloves and ear plug at the processing area, safety boots/shoes, safety glasses, face glasses, gloves and face mask in the water treatment area etc.
An audit for determining compliance with the minimum standards had been conducted on all types of PPE used and report dated 24 Aug 2015. Adequate fire extinguishers and hose reels found to be located at strategic locations, operational and maintained in good conditions. Location map of fire extinguishers is available. Training for workers in First Aid was carried out in the mill and estates and records maintained such as for Soeharto estate on 18-19 Mar, 2015 and for Sungai Tengi estate on 21 Sep 2015.
The POM and estates have established their accident reporting KPI and incident monitoring implemented. Yearly reporting of JKKP8 regulations was submitted to JKKP on time, i.e. in January of each year. The Safety & Health Officer maintains records on the rate of accidents to workmen, trends in rate of accidents, fatalities and non-fatalities captured to prevent mishaps. So far, there was no accident from Jan till Sep 2015.
4.7.3 All workers involved Training programme planned for year 2015 includes training for all in the operation shall be categories of workers has been determined on 10 Jan 2015. adequately trained in safe working practices (see Appropriate trainings on safe working practices are planned for: Criterion 4.8). Adequate - workers exposed to machinery and and appropriate protective equipment high noise levels, shall be available to all - workers working in confined space, workers at the place of work to cover all - harvesters potentially hazardous - pesticides operators operations, such as - manurers pesticide application, machine operations, and - worker in Oil Mill (Loading ramp, land preparation, harvesting and, if it is press, boiler, grader etc) used, burning. Major Compliance
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The training programme 2015 included the various types of training such as fire-fighting and fire drill, exposure to high noise levels and control measures for protection of hearing and audiometric tests, understanding MSDS/CSDS and first aid training. The above trainings partly has been conducted for year 2015 and records were available such as QOHSE on 04 Aug 2015 with 9 participants. Evaluation carried out on each of the trainings to determine its effectiveness. The training content was revised periodically for improvement. During field visit at Sungai Tengi estate so all harvesting workers have use specified PPE (helmet, boot and gloves). Major NC# During field visit at Soeharto estate, 4 out of the 11 harvesting OCL-03 workers were found to be not wearing PPE (safety helmets, mask and gloves) that were provided to them.
4.7.4 The responsible The responsible person (usually the Mandor or Headman) had been Complied person/persons shall be identified. Health and Safety Team 2015 has also been determined identified. There shall be properly. records of regular Records of regular meetings (every 2 months) between the responsible meetings between the responsible person/s and person and workers to discuss about health and safety had been workers. Concerns of all verified to be satisfactory. The latest meeting was conducted on 28 Aug parties about health, 2015 with 14 participants at Soeharto estate and on 21 Apr 2015 with safety and welfare shall 17 participatns at Sungai Tengi estate. be discussed at these meetings, and any issues raised shall be recorded. Major Compliance
4.7.5 Accident and Accident and emergency procedures had been written and briefed to emergency procedures staff, workers, contractors and visitors. shall exist and Workers trained in First Aid were present in the mill and field instructions shall be operations. clearly understood by all workers. Accident Records on all accidents had been verified to be maintained procedures shall be satisfactorily. So far, there is no incident report noted. available in the Quarterly review on accident cases had been carried out during appropriate language of quarterly meeting of Environment, Safety, & Health (ESH). the workforce. Assigned operatives trained in First First Aid equipment was available at POM, estates and at worksites. Aid should be present in Samples of First Aid box was checked and contents found to be both field and other completed and in usable order during field visit at the plantation such as operations, and first aid field visit for Soeharto estate on 06 Oct 2015 at Phase (Peringkat) -1 equipment shall be Block 24 for fertilizing activities and at Phase (Peringkat)-2, Block 2 for available at worksites. harvesting activities. And for Sungai Tengi estate on 07 Oct 2015 at Records of all accidents Phase (Peringkat)-2 Block 5 for harvesting activities. First Aid Kits have shall be kept and periodically reviewed. been kept and maintained by Mandor in the plantation. Minor Compliance
It was found during the visit to the POM, a first aid box located at the water treatment area is empty and in broken condition. Minor NC# OCL-01
4.7.6 All workers shall be Medical care had been provided to all the workers. Complied provided with medical care, and covered by Local workers are covered by SOCSO, whereas foreign workers are accident insurance. covered by Foreign Workers Compensation Scheme with insurance Minor Compliance companies e.g. Pentadbiran SPPA Sdn Bhd for Indonesia (Dedi Irawan, Samsul Hadi, Serudin, Sohibul Abrar, Zikril Hakim etc) and Bangladesh (Monir Hossain) employees both for Soeharto and Sungai Tengi estate.
4.7.7 Occupational Records on Lost Time Accident (LTA) metrics had been verified to be Complied injuries shall be recorded using Lost Time Accident satisfactory such as Report from Jan till Sep 2015 for Oil Mill and (LTA) metrics. Estates (Soeharto and Sungai Tengi estates). There was no incident so Minor Compliance far.
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Criteria 4.8 All staff, workers, smallholders and contract workers are appropriately trained. Indicators Findings and Objective Evidence Compliance 4.8.1 A formal training A formal training programme on all aspects of RSPO Principles and Complied programme shall be in place that covers all Criteria and the Supply Chain Certification System have been aspects of the RSPO established and implemented. Principles and Criteria, Training for various categories of operators, including all field and office and that includes regular staff, with regards to their duties and training needs had been reviewed assessments of training and found acceptable. Examples are refreshing training on 01 Oct needs and documentation 2015 with for 9 persons for Oil Mill and training on 08 Aug 2014 for of the programme. Major Compliance Soeharto estate with 49 participants and on 09 Mar 2015 for Sungai Tengi estate with 14 participants.
4.8.2 Records of training Records of training for each employee, including new employees were Complied for each employee shall maintained such as for Mr. Mohd Fairuz Bin T. Mohd Kadir (laboratory be maintained. analyst). The training has been followed were Awareness of QHSE, Minor Compliance RSPO and SOP of laboratory.
Principle 5: Environmental responsibility and conservation of natural resources and biodiversity
Criteria 5.1 Aspects of plantation and mill management, including replanting, that have environmental impacts are identified, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continual improvement. Indicators Findings and Objective Evidence Compliance 5.1.1 An environmental The Environmental Aspect and Impacts Assessment were conducted Complied impact assessment (EIA) shall be documented. and well documented. The assessment documents had included the identification of aspects from field activities that includes fertilizing, Major Compliance spraying, transportation of FFB, garbage disposal and also road maintenance. The report had also included the action plans and recommendations to mitigate the negative effects and to promote the positive ones such as construction of sewage and landfills, together with other conservation activities applicable to the PMU. The assessment has also included the participation from the smallholders under the FELDA Settlers schemes. 5.1.2 Where the Management plans / action plans for mitigation of impacts, timeframe Complied identification of impacts for action and responsible persons were identified and had been requires changes in implemented and monitored for year 2015. Thus, the corrective current practices, in order action taken on previous assessment Minor NC# SH-01 verified to to mitigate negative effects, a timetable for be effective. change shall be developed and The Mill and Estate Managers have been identified as persons implemented within a responsible for their respective management plans. There were no comprehensive action major changes to the identified impacts since the establishment of the plan. The action plan above documents shall identify the responsible Impacts such as smoke emissions, noise levels, POME and EFB person/persons. management were verified at the POM.
Minor Compliance 5.1.3 This plan shall The monitoring of the documented environmental improvement plans is Complied incorporate a monitoring protocol, adaptive to ongoing. operational changes, which shall be
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Criteria 5.2 The status of rare, threatened or endangered species and other High Conservation Value habitats, if any, that exist in the plantation or that could be affected by plantation or mill management, shall be identified and operations managed to best ensure that they are maintained and/or enhanced. Indicators Findings and Objective Evidence Compliance 5.2.1 Information shall be HCV assessment was conducted by the Felda Sustainability Complied collated in a High Conservation Value Department HQ and documented in a report dated 06 Aug 2014. The assessment was done in collaboration and meetings with other (HCV) assessment that includes both the planted agencies such as Jabatan Perhutanan, Jabatan Perhilitan, Jabatan area itself and relevant Alam Sekitar, Felda Officer, Peneroka and also the local communities. wider landscape-level There was no significant HCV area in the PMU. The HCV assessment considerations (such as has taken into consideration all aspects of environmentally sensitive wildlife corridors). areas such as ponds, streams, wildlife boundaries and was Major Compliance documented. Visits to site confirmed that the Sg. Tengi estate and Soeharto estate were surrounded by palm oil estates. Also, part of Felda Soeharto and Sg. Tengi estates borders the Ulu Bernam Forest Reserve. Although no HCV areas found inside the PMU area, conservation areas/environmentally sensitive areas had been identified and being monitored. Conservation areas are the streams/rivers Sungai Rambai and Sungai Dusun in Sg. Tengi and Soeharto estates respectively. Management Plan and Action Plan documented for HCV area and biodiversity in all the estates with specific actions to be taken by the Estate Manager / Assistant Manager. The environmentally sensitive areas were documented and inspected on site.
5.2.2 Where rare, Regular patrols within the PMU were being carried out and findings threatened or endangered (RTE) species, or HCVs, recorded by the respective Estate Executives to monitor the conservation / buffer zone areas. are present or are affected by plantation or Monitoring and control of any illegal hunting, fishing or collecting mill operations, activities was also implemented. appropriate measures that are expected to In addition, signage that prohibits hunting, fishing and water polluting maintain and/or enhance activities were verified on-site at all the estates visited and found to them shall be have been satisfactorily maintained. implemented through an However, there were insufficient signages to denote the specific action plan. OBS # prohibited activities for areas bordering the forest reserves. SH-01 Major Compliance An observation was raised.
5.2.3 There shall be a There is evidence of commitment to discourage any illegal or programme to regularly inappropriate hunting, fishing or collecting activities via the signage educate the workforce erected around the affected areas which prohibit such activities. about the status of these
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RTE species, and However, Information on rare, threatened and endangered species appropriate disciplinary were inadequately disseminated to the workforce and community measures shall be and not being implemented accordingly. instituted in accordance There was no evidence or record of it being implemented at both Minor NC # with company rules and SH-01 national law if any estates (Felda Soeharto and Felda Sungai Tengi) and no individual working for the appropriate measures taken in line with company laws and company is found to national regulation. In addition, signages informing activities that capture, harm, collect or are prohibited were not sufficiently placed at the area bordering kill these species. the forest reserve, Hutan Simpan Ulu Bernam.
Minor Compliance 5.2.4 Where an action Management plans were established and monitoring outcomes were Complied plan has been created there shall be ongoing reviewed by the Estate Managers. monitoring: There are no significant HCV or reported RTE at the Sg. Tengi Estate • The status of HCV and and Soeharto Estate, as reported in the PQSM Report. Verification RTE species that are were also made during on-site assessment and found to be affected by plantation or satisfactory. mill operations shall be documented and The overall management plan on the status of HCV/RTE of the Sg. reported; Tengi plantation group was collated, reviewed and monitored by the HQ • Outcomes of monitoring sustainability team. shall be fed back into the action plan.
Minor Compliance 5.2.5 Where HCV set- Verified that HCV set-aside is not applicable for this PMU. Not applicable asides with existing rights of local communities have been identified, there shall be evidence of a negotiated agreement that optimally safeguards both the HCVs and these rights.
Minor Compliance Criteria 5.3 Waste is reduced, recycled, re-used and disposed of in an environmentally and socially responsible manner. Indicators Findings and Objective Evidence Compliance 5.3.1 All waste products Visits made to POM and PMU Sg. Tengi and Soeharto estate showed Complied and sources of pollution shall be identified and that all waste products and sources of pollution were identified and documented. documented. The documentation and identification of all the waste products such as Major Compliance scheduled waste, domestic waste, clinical waste and recyclable waste such as metal, plastic, mill waste and polluting materials e g. EFB, POME, stack emissions and boiler ashes were maintained and monitored at the POM. Scheduled Waste identified included spent hydraulic oil (SW 305), spent lubricant oil (SW 306) , used chemical drums / containers (SW 409), used filters (SW 410), clinical waste (SW 404) and used batteries (SW 102).
5.3.2 All chemicals and At the mill, the disposal of used chemicals and containers were done in Complied their containers shall be disposed of responsibly. accordance with their schedule on waste management as planned. Stores for scheduled waste were inspected and audited at the POM Major Compliance and disposal was done by scheduled waste disposal company authorized and licensed by Department of Environment. Records on the disposal were well recorded and documented.
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Appropriate secondary containment for the diesel skid tanks, chemical and scheduled waste storage areas was verified to be maintained at the POM.
5.3.3 A waste The mill and estates have established and documented waste management and disposal plan to avoid or management and disposal plans to avoid or reduce pollution. These operational plans covered the waste products and sources of pollution reduce pollution shall be documented and identified in the mill and estates. implemented. Recycling of crop residues / biomass i.e. EFB and POME had been implemented. EFB application plans and progress reports were verified Minor Compliance to be satisfactory. Appropriate secondary containment for the diesel skid tanks, chemical and scheduled waste storage areas was verified to be maintained.
Segregation of wastes, i.e. domestic waste, general wastes and
scheduled wastes was verified to be satisfactory. Proper storage areas were identified for the storage of the recyclable wastes at the mill and estates. Recycling bins of three different colour codes for specific recycle waste were available in the mill and estates and were used for solid waste segregation and recycling.
Scheduled waste disposal at the mill was done by an appointed contractor that is licensed by the Department of Environment. Sewage from the staff, workers and smallholders housing goes to the landfill facility provided.
The solid waste management and disposal plan using landfill were available at both the mill and estates. However, it was found to be
poorly implemented and monitored. At the mill, there was no signage to indicate the designated area meant for metal waste. The metal waste found to be placed all over the place. In addition, the dumpsite for the organic waste, Major NC # especially EFB, was not properly managed and monitored. SH-02 At both Felda Soeharto estate and Felda Sungai Tengi estate, it was found that household wastes were scattered all over the places at the dumpsite. As this non-conformance had been raised in the previous assessment, this finding is now upgraded to Major NC as it is a recurring non-conformance.
Criteria 5.4 Efficiency of fossil fuel use and the use of renewable energy is optimised.
Indicators Findings and Objective Evidence Compliance 5.4.1 A plan for improving Monthly records of energy consumption of non-renewable and Complied efficiency of the use of renewable fuel per metric tonne of palm product at the POM were fossil fuels and to optimise available. It was verified that energy usage are being monitored at the renewable energy shall be POM for better control and comparison of trends. in place and monitored. Apart from use of diesel for electricity, palm fiber was also used to Minor Compliance generate electricity through steam turbine and boiler. The use of energy in the mill was monitored monthly to compare the energy usage against the production of CPO. Electricity generation was through steam turbine and boiler where palm fiber and PK shells were used as renewable energy/fuel on a 70:30 ratio basis. As for the month of the audit, summary of usage of energy for the production of per metric tonne of CPO is as follows: Lubricant ; 0.25 litre Diesel:4.5 litres
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Electricity: 14Kwh Water: 1.0 litre The fibre is also being used as fuel but the amount used was not recorded. It was based only on the biomass ratio of the FFB. The monthly reports were made available during the audit and found to be satisfactory. Criteria 5.5 Use of fire for preparing land or replanting is avoided, except in specific situations as identified in the ASEAN guidelines or other regional best practice. Indicators Findings and Objective Evidence Compliance 5.5.1 There shall be no The Group policy of ‘Zero open burning’ is enforced since July 2011. Complied land preparation by burning, other than in The estates had observed the policy of ‘Zero open burning’ for specific situations as replanting. identified in the Field inspections made at Sg. Tengi Estate and Soeharto Estate ‘Guidelines for the showed no evidence of open burning. Implementation of the ASEAN Policy on Zero Burning’ 2003 , or comparable guidelines in other regions.
Major Compliance 5.5.2 Where fire has been The PMU has adhered to the ‘zero burning ‘policy for replanting at the Complied used for preparing land estates. During the audit, there were no replanting activities carried out for replanting, there shall be evidence of prior in the Sg. Tengi and Soeharto estates. approval of the controlled Also, there was no evidence of any burning of domestic waste at the burning as specified in housing line sites and at the sanitary landfills of the estates during on ‘Guidelines for the site field assessment. Sanitary landfills were located at both Sg. Tengi Implementation of the and Soeharto estates. The area is located far from the village ASEAN Policy on Zero Burning’ 2003, or settlement and water sources. comparable guidelines in other regions.
Minor Compliance Criteria 5.6 Plans to reduce pollution and emissions, including greenhouse gases, are developed, implemented and monitored. Indicators Findings and Objective Evidence Compliance 5.6.1 An assessment of The PMU had carried out an environmental impact assessment and Complied all polluting activities shall identified the potential polluting activities at the POM and estates that be conducted, including include discharge to waterways, gaseous emissions to air and gaseous emissions, particulate/soot emissions contamination on land. and effluent (see Criterion Monitoring of mill dust particulates and gas emissions is being done 4.4). online using the Continuous Emissions Monitoring System (CEMS) and supported by the Ringlemann Smoke Chart. Report showed evident Major Compliance that the emission is within the permissible limits of DOE as verified by documents made available during the on site visit to the mill. A monthly report on the smoke emission is also provided to DOE for their monitoring. POME treatment, monitoring and land application is monitored, maintained and adhered to the DOE regulations. Monitoring of noise levels at the mill has been carried out. Noise levels at the boiler station and the sterilization unit were identified to be above 85 dB. Ear mufflers have been issued and seen to be worn by workers at those locations As documented in the HIRAC table, PPE use and audiometric examination used as control measures to prevent hearing loss of mill workers.
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5.6.2 Significant Identification of significant pollutants and greenhouse gas (GHG) pollutants and greenhouse gas (GHG) emissions has been done. e.g. POME, diesel / fuel and fertilizer. Their Complied usage have been recorded and documented at both the PMU. emissions shall be identified, and plans to It was verified that energy usage are being monitored at the POM for reduce or minimise them implemented. better control and comparison of trends.
Major Compliance 5.6.3 A monitoring system Monitoring and reporting of the significant pollutants to water, gaseous Complied shall be in place, with regular reporting on emissions to air and contamination on land are in place. progress for these Tools and systems used include the DOE online CEMS monitoring for significant pollutants and air emissions, water quality at discharge points as per DID regulations emissions from estate and SW disposal were adhering to DOE requirements and mill operations, using appropriate tools. Water samples were regularly taken every six months and tested by mill environment officer in charge and analyzed to ensure compliance to Minor Compliance DOE requirements at the final discharge point of the palm oil mill effluent pond and at upstream and downstream of waterways. The water samples were sent to Felda Analytical Laboratory for analysis. Test reports were maintained and results verified to have met the permissible regulatory limits for pH, BOD, COD, Total Solids, Suspended Solids, Oil & Grease, Ammoniacal Nitrogen and Total Nitrogen. Latest report dated 14 Sep 2015 made available. Also, a report has also been provided and submitted to RSPO on the 05 Oct 2015 for the summary on the Palm GHG.
Principle 6: Responsible consideration of employees, and of individuals and communities affected by growers and mills Criterion 6.1 Aspects of plantation and mill management that have social impacts, including replanting, are identified in a participatory way, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continual improvement. Indicators Findings and Objective Evidence Compliance 6.1.1 A social impact The Social Impact Assessment (SIA) based on an external Complied assessment (SIA) including stakeholder consultation (Penerangan RSPO dengan Stakeholder records of meetings shall Gugusan Hulu Bernam) dated 08 Aug 2014 held at Dewan Orang be documented. Ramai Sungai Tengi for the whole PMU was verified as per meeting Major Compliance minutes dated 25 Aug 2014. At individual estate and POM levels management plan and continuous improvement plans were prepared based on internal survey conducted. The review mechanism had appropriately involved stakeholders such as the workers, government department, smallholders, school, contractor, supplier, etc. within the PMU. Meetings of minutes held periodically had discussed, reviewed and addressed social issues such as maintaining facilities, road conditions, health and welfare, gender issues, social and religious activities, sports and recreational needs. 6.1.2 There shall be The participation of both internal and external stakeholders which was Complied evidence that the evident with the list of participants recorded. Minutes of meetings as assessment has been appended to the SIA Report were maintained as records. Assessment done with the participation conducted was include the villagers, smallholders, suppliers, of affected parties. contractors, government agencies, school and etc.
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Major Compliance Stakeholders meeting was conducted by respective Estates and POM and recorded in the meeting minutes. 6.1.3 Plans for avoidance Plan for the avoidance or mitigation of negative impact and or mitigation of negative promotion of positive impact (Jadual Masa Pelan) arising from Major NC# impacts and promotion of the Social Impact Assessment (SIA) for the POM and estates the positive ones, and (Felda Soeharto estate and Felda Sungai Tengi estate) was not MNM-01 monitoring of impacts updated and documented to include the following changes: identified, shall be (1) New infrastructure built such as new mosque and RELA developed in consultation building at Sungai Tengi Estate with the affected parties, documented and (2) Closure of the Tadika KEMAS at the POM housing areas. timetabled, including responsibilities for implementation. Major Compliance 6.1.4 The plans shall be The PMU has planned to review the SIA plans at least once in every Complied reviewed as a minimum two years for follow-up and updating the current practices and once every two years and implementation. So far, the plans has not been reviewed yet since updated as necessary, in previous assessment. those cases where the review has concluded that changes should be made to current practices. There shall be evidence that the review includes the participation of affected parties. Minor Compliance 6.1.5 Particular attention Positive impacts was include the smallholder scheme such as Complied shall be paid to the impacts increased work opportunities, increased income and improved living of smallholder schemes standards were identified. (where the plantation includes such a scheme). Minor Compliance
Criterion 6.2 There are open and transparent methods for communication and consultation between growers and/or millers, local communities and other affected or interested parties. Indicators Findings and Objective Evidence Compliance 6.2.1 Consultation and Documented policies and procedures are available for internal and Complied communication procedures external communication and consultation. shall be documented. Manual Lestari 1A (Prosedur Komunikasi, Penglibatan dan Rundingan Major Compliance – ML-1A (l2-PR3(0)), Polisi Komunikasi, Revision dated 22/05/2015 is available and maintained. Interviews with representatives of villagers, contractors, suppliers, workers (local and foreign workers), local authority and NGO’s revealed there is open and transparent communication and consultation process in place. Channels of communications between the management and affected or interested parties include the Joint Consultative Committee (JCC), gathering with Felda Scheme Smallholders, Jawatankuasa Kemajuan dan Keselamatan Kampung/Rancangan (JKKR) and Gerakan Persatuan Wanita (GPW). All of these meetings and gatherings were conducted frequently. Other than meetings and gatherings, smallholders and affected parties also have access to workplace inspections, suggestion boxes, housing maintenance request forms to raise their concerns.
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These interviews confirmed the effectiveness of PMU consultation and communication processes with the internal and external stakeholders. 6.2.2 A management Social officers for mill and each estate were appointed by the Complied official responsible for respective mill / estate managers, who had held meetings for the these issues shall be communication and consultation with the local communities and other nominated. affected or interested parties on any social issues arising. Minor Compliance Appointment records sighted show evidence the existence of a management official for these issues. Interviews with mill and estate managers verified the understanding of their roles and responsibilities. 6.2.3 A list of stakeholders, List of stakeholder for POM and estates audited (Felda Soeharto Minor NC# records of all estate and Felda Sungai Tengi estate) was not updated to include MNM-01 communication, including affected parties such as smallholders, NGOs, Government confirmation of receipt and agencies, FFB suppliers, contractors and suppliers. that effort are made to ensure understanding by affected parties, and The stakeholders’ communications file and communication records records of actions taken in and actions taken were available and maintained. response to input from stakeholders, shall be External stakeholders may specifically raise their concerns through maintained. suggestion boxes and complaint form, i.e. “Rekod Pertanyaan Dan Maklumbalas” provided by the POM and respective estates. There Minor Compliance were records sighted where external stakeholders communicated with the PMU with some specific requests. All these requests were responded and records maintained properly. Noted that there are open and transparent methods for communication and consultation which has taken into consideration the local conditions including foreign workers and job opportunities for local people. Verified that consultations with various stakeholders had been held and recorded in the minutes of meeting that include actions taken in response to input from stakeholders. At the stakeholder consultation conducted during the ASA-01 OBS # assessment, a majority of the stakeholders expressed that they MNM-01 lack awareness and information regarding RSPO requirements. An observation was raised, Criterion 6.3 There is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented and accepted by all affected parties. Indicators Findings and Objective Evidence Compliance 6.3.1 The system, open to The PMU has an established and documented system for dealing with Complied all affected parties, shall complaints and grievances and it was well implemented. Prosedur resolve disputes in an Menangani Aduan dan Rungutan (ML-1A/L2-PR4(0)) issued on March effective, timely and 2012, reviewed on 22/05/2015 was established and maintained. appropriate manner, ensuring anonymity of Respect of anonymity and protection of complainants is provided st complainants and through “Polisi Pemberian Maklumat (Whistle Blowing)” dated 1 June whistleblowers, where 2014 requested. Interviews with staff and workers and their representatives revealed Major Compliance knowledge and understanding of the complaints, dispute and resolution mechanism. The mechanism provides for open and consensual agreements with relevant affected parties. This was confirmed through interviews conducted with various staff, workers, contractors, suppliers, local community representatives of Sg.Tengi Grouping during the current assessment. The PMU has an established and documented system for dealing with complaints and grievances and it was well implemented. 6.3.2 Documentation of Complaints and grievances are handled by respective responsible Complied both the process by which persons. Mechanisms are appropriately established and implemented. a dispute was resolved and
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Report No.: R9297 /14 -2 Felda Global Ventures Plantations (Malaysia) Sdn Bhd Page 39 of 80 KKS Sg. Tengi Grouping: ASA-01 the outcome shall be Records of meeting and any resolutions or outcomes are maintained available. in the meeting minutes or in the Complaints Log Book. Minor Compliance Criterion 6.4 Any negotiations concerning compensation for loss of legal, customary or user rights are dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions. Indicators Findings and Objective Evidence Compliance 6.4.1 A procedure for The documented procedure (Prosedur Mengenalpasti Hak Complied identifying legal, customary Perundangan dan Adat (ML-1A/L2-PR12(0)), for identifying legal and or user rights, and a customary rights and procedure for identifying people entitled to procedure for identifying compensation have been maintained. people entitled to There were no borders which were adjacent to any villages or native compensation, shall be in land in the PMU. Therefore, no cases requiring any negotiation or place. compensation pertaining to these criteria. Major Compliance There have been no changes in this status as at the period of verification on site. 6.4.2 A procedure for There is a procedure for calculating and distributing compensation. To Complied calculating and distributing date, there has been no dispute by any parties relating to legal, fair compensation customary or user rights at the PMU. (monetary or otherwise) shall be established and There have been no claims or disputes relating to legal and customary implemented, monitored rights. As such, the application of the procedure for calculating and and evaluated in a distributing compensation has not been invoked participatory way, and corrective actions taken as a result of this evaluation. This procedure shall take into account: gender differences in the power to claim rights, ownership and access to land; differences of transmigrants and long- established communities; and differences in ethnic groups’ proof of legal versus communal ownership of land. Minor Compliance 6.4.3 The process and So far, there has been no dispute by any parties relating to legal, Complied outcome of any negotiated customary or user rights at the PMU. Therefore the process and agreements and outcome of compensation could not be observed. compensation claims shall be documented, with evidence of the participation of affected parties, and made publicly available. Major Compliance Criterion 6.5 Pay and conditions for employees and for contract workers always meet at least legal or industry minimum standards and are sufficient to provide decent living wages. Indicators Findings and Objective Evidence Compliance 6.5.1 Documentation of “Polisi Pengambilan Pekerja Asing” dated 01 Jun 2014 has been Complied pay and conditions shall be documented and publicly available. It addresses foreign workers, available. which mostly come from Indonesia. Employment conditions stated in Major Compliance the “Kontrak Pekerjaan” was found meet the legal requirement. Only local workers are hired at the Sungai Tengi POM and in all the estates offices. However, FTP and other contractors providing
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agricultural services to the Scheme Smallholders hired both local and foreign workers. Documentation and conditions of pay for foreign workers at the FTP and for local workers at the estates offices are available for verification. Employment agreement with foreign workers, who are mostly from Indonesia, stated all statutory fringe benefits and eligible incentives, e.g. working hours, overtime, leave and medical benefits, maternity leave for women, insurance coverage, deductions, resignation notice period, company rules. Payments are made latest by 7 th of each month and consistent with Minimum Wage Order 2012 as well as MAPA-NUPW collective agreement. Offer letter, employment agreements with applicable terms and conditions and accompanying appendices conditions are documented in Bahasa Malaysia and have been explained to and understood by the employees. The PMU also provides free housing and piped water supply, electricity, medical benefits, mosques and welfare amenities that in overall constitutes a decent living for the employees. 6.5.2 Labour laws, union “Pengakuan Penerimaan Syarat-syarat Perkhidmatan Petugas Complied agreements or direct Syarikat Kumpulan Felda & Kod Etika dan Tatalaku Petugas Syarikat contracts of employment Kumpulan Felda yang berkuatkuasa Mulai 1 January 2010” for local detailing payments and workers were sighted. conditions of employment (e.g. working hours, Documented employment contracts, i.e. “Syarat –syarat Perkhidmatan deductions, overtime, Petugas Syarikat (Felda Technoplant Sdn. Bhd) effective dated on 1 st sickness, holiday January 2015, Kadar Bayaran Upah Pekerja Ladang, Surat Perjanjian entitlement, maternity Kontrak Pekerjaan diantara Felda (Lembaga Kemajuan Tanah leave, reasons for Persekutuan dengan Tenaga Kerja Asing) dengan Pekerja Asing dismissal, period of notice, etc.) shall be available in Indonesia” for foreign workers hired by FTP were sighted during the the languages understood audit. The contract document covers all issues such as working by the workers or hours, deductions, overtime, sickness, holiday entitlement, maternity explained carefully to them leave, reasons for dismissal, period of notice and was made available by a management official. in Bahasa Malaysia, which is understood by the workers. Minor Compliance 6.5.3 Growers and millers The estate management was noted to have complied with Workers’ Complied shall provide adequate Minimum Standard of Housing and Amenities Act 1990 (Act 446). housing, water supplies, medical, educational and Site visits to workers’ homes and interviews with the workers and their dependents revealed their general satisfaction with their housing welfare amenities to national standards or conditions and amenities. above, where no such public facilities are available or accessible. Housing, electricity and water supply
Minor Compliance Foreign workers hired by FTP in Felda Sg, Tengi and Felda Soeharto estate are accommodated in cabin quarters but plan has been made to upgrade the cabin into a proper housing in 2017. The water supply to the workers accommodation is piped water from the treatment plant
maintained by the water utility company.
Workers are given a small patch of land to grow vegetables/fruit trees and keep poultry around their houses in order to reduce the cost of living. The workers are provided with 24 hours electricity supply. Each worker was given subsidy for electricity and water bills. Clean water supply comes from treated piped water and supplied to the workers quarters.
Schools The local staff and workers’ children between 5 to 6 years old attend Tadika Kemas kindergartens which are provided free of charge. Onsite visit to a kindergarten showed cheerful children learning in a safe
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environment. Primary school for children aged 7 to 12 years old and secondary school for children aged 13 to 17 years old is available within the PMU.
Sundry shops
The availability of sundry shops, fresh market, weekly night market, restaurants within the PMU was helped the staff and workers get their sundries nearby. From interviews with the workers in PMU it was found that most household sundries, including frozen foodstuffs were available on sale. Fresh food, such as fish, chicken, vegetable and meat are brought in by suppliers on daily basis.
Crèche ( Rumah Asuhan Kanak-kanak) There is no need for crèche at the estates as most of the younger children are being cared for by the extended family members. Government managed kindergartens, i.e. Tadika KEMAS, are available in all estates visited for pre-school children.
Medical clinics Government managed clinic is available at the PMU. Medical allowance limit for married Felda staff is RM400/year and bachelor staff is RM200/year. FTP foreign workers are entitled for RM200/year of medical allowance. Transport to and from the clinics are provided free for Felda staff and FTP foreign workers. FTP foreign workers are covered by insurance underwritten by Zurich Insurance. Currently all application and renewal processes are managed by FTP Trading on behalf of the estates 6.5.4 Growers and millers Food available for the Felda staff, Scheme Smallholder and FTP Complied shall make demonstrable foreign workers provided through sundry shops, fresh market and efforts to monitor and weekly night market within the PMU. Most of the sundry shops are improve workers’ access to operated by the Scheme Smallholders. Furthermore, small towns, adequate, sufficient and affordable food. such as Tanjung Malim, are only half an hour drive from the estates. Minor Compliance Criterion 6.6 The employer respects the rights of all personnel to form and join trade unions of their choice and to bargain collectively. Where the right to freedom of association and collective bargaining are restricted under law, the employer facilitates parallel means of independent and free association and bargaining for all such personnel. Indicators Findings and Objective Evidence Compliance 6.6.1 A published The published statements of policy (Polisi Hak Kebebasan Bersuara Complied statement in local st languages recognising dan Menganggotai Persatuan) dated 1 June 2014 which recognizes freedom of association the employee’s freedom of association, was found to be available and shall be available. widely displayed in all notice boards of the PMU. Major Compliance This policy is available in Bahasa Malaysia which can be understood by all of the workers. The Felda management had formed the JCC “Jawatankuasa Penyelaras KKP Wilayah Trolak, non-executive Felda staff are members of Kesatuan Pekerja-Pekerja Felda Palm Industries Sdn. Bhd. And executive staff are members of Persatuan Kakitangan Kanan Felda [PKKF]. Currently no workers union for foreign workers nor any foreign workers having membership with National Union of Plantation Workers [NUPW]. Any grievances from the foreign workers are communicated directly to their immediate supervisors. 6.6.2 Minutes of meetings The Felda management had formed the JCC “Joint Consultative Complied with main trade unions or Committee Wilayah Trolak” as a mechanism to cater to the collective
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Report No.: R9297 /14 -2 Felda Global Ventures Plantations (Malaysia) Sdn Bhd Page 42 of 80 KKS Sg. Tengi Grouping: ASA-01 workers representatives bargaining and needs of the workers . Records of meetings were shall be documented. documented, kept and available. Unions mentioned above was meet Minor Compliance regularly. Criterion 6.7 Children are not employed or exploited. Indicators Findings and Objective Evidence Compliance 6.7.1 There shall be The PMU has a policy of not employing child labor, i.e. persons below Complied documentary evidence that 18 years old in accordance with Employment Act 265 as evidenced in minimum age requirements “ Polisi Pekerja Kanak-kanak” dated 01 Jun 2014. This policy is are met. displayed at strategic public places. Major Compliance Interviews with workers in the estates and at the Mill confirmed implementation of the stated policy. The birth date in the Identification card (for local workers) and passport (for foreign workers) was used as the verification for age. The implementation was verified through checks on Senarai Maklumat Petugas. Interviews with workers in the estates and at the Mill confirmed implementation of the stated policy. The school going children of smallholders are not allowed to assist in plantation work and this was verified during field visits. Criterion 6.8 Any form of discrimination based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, or age, is prohibited. Indicators Findings and Objective Evidence Compliance 6.8.1 A publicly available The PMU has a publicly displayed documented policy on equal Complied equal opportunities policy opportunities “Polisi Kesetaraan Peluang” dated 01 Jun 2014. The including identification of policy stressed on non-discrimination based on race, caste, nationality, relevant/affected groups in religion, gender, sexual orientation, disability/handicap, and the local environment shall be documented. union/political affiliations. However, positive discrimination for the benefit of certain society groups may be allowed after consultation. Major Compliance During the audit, second generation of the original Scheme Smallholders found managing some of their parents’ plots of lands. None of them found to be underage. 6.8.2 Evidence shall be There is a documented policy on foreign workers “Polisi Pengambilan Complied provided that employees Pekerja Asing” dated 01 Jun 2014. It is publicly displayed along with and groups including local other policies at strategic places. communities, women, and migrant workers have not The employment of foreign workers was implemented without affecting been discriminated the opportunities for local communities. FTP provides agricultural against. services to Scheme Smallholders and hired foreign workers legally. Major Compliance Local workers are covered under SOCSO scheme and the foreign workers are covered under Foreign Workers Compensation scheme (FWCS). Interviews with local and foreign workers’ dependents revealed their satisfaction with the PMU for job opportunities and they enjoy all common welfare amenities like free housing, free water and electricity supplies, medical care, and transportation of school children. They are aware of the “aduan” mechanism by which they can make any complain or request to the management. Interview with a group of women workers which is the gender committee members revealed that there has been no known case of any sexual harassment or violence against women at the field or at the housing areas. Wage records inspected and rates confirmed as being non- discriminatory for male, female and both local as well as foreign workers.
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6.8.3 It shall be Depending on the nature of work positions, The PMU management Complied demonstrated that takes into considerations the needs for related skills in recruitment recruitment selection, selection, hiring and promotion exercises. hiring and promotion are based on skills, It was verified that the new recruitment and promotions to higher capabilities, qualities, and position at the estates and POM were based on evaluations which medical fitness necessary considered the skill, capabilities, qualities and medical fitness of the for the jobs available. employees. Minor Compliance A verification of job advertisement and related records evidenced that a recent employment of general workers was carried out in a non- discriminative manner. The necessary qualifications and conditions were clearly stated in the job advertisement. Terms and conditions of work were spelled out in the offer letter as well. Criterion 6.9 There is no harassment or abuse in the work place, and reproductive rights are protected. Indicators Findings and Objective Evidence Compliance 6.9.1 A policy to prevent A documented policy to prevent sexual harassment and violence Complied sexual and all other forms “Polisi Gangguan Seksual, Keganasan dan Hak Kebebasan of harassment and Reproduksi” dated 01 Jun 2014 and memorandum on sexual violence shall be harassment is available and publicly displayed. implemented and communicated to all levels Gender committees or equivalent were formed, i.e. Kelab Keluarga of the workforce. Dayabudi [KKD] in the POM and Gerakan Persatuan Wanita [GPW] at Major Compliance the estate level. At the group level, Jawatankuasa Bertindak Wanita was formed. All committee members are aware of the policy and its complaints procedures. Interviews with staff and workers reflected communication on harassment issue, general understanding of sexual harassment in the workplace and the mechanism to report an alleged sexual harassment or violence. 6.9.2 A policy to protect the The PMU’s commitment to protect the reproductive rights and rights to Complied reproductive rights of all, have a family of the workers especially women is evidently stated in especially of women, shall the policy to prevent sexual harassment and violence be implemented and communicated to all levels Polisi Gangguan Seksual, Keganasan Serta Hak Kebebasan of the workforce. Reproduksi and memorandum on pregnant or breastfeeding women is Major Compliance not allowed to handle chemical is available. Local female staff is fully aware that they are entitled for two months paid maternity leave. There was no pregnant or breastfeeding women working as agrochemical handlers were verified during assessment based on the records and interviews of field workers. 6.9.3 A specific grievance “Prosedur Menangani Aduan Oleh Gender Committee (Ref Nr: ML- Complied mechanism which respects 1A/L2-PR10(0)” was established and maintained. anonymity and protects complainants where Management confirmed that there has been no report of sexual harassment or domestic violence was reported in the PMU so far. requested shall be established, implemented, and communicated to all levels of the workforce. Minor Compliance Criterion 6.10 Growers and millers deal fairly and transparently with smallholders and other local businesses. Indicators Findings and Objective Evidence Compliance 6.10.1 Current and past Onsite audit verified that the current and past prices paid for FFB Complied prices paid for Fresh Fruit pricing were displayed at the Estates and Mill office.
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Bunches (FFB) shall be FFB price paid per delivery is also stated in each truck delivery slip publicly available. issued by the mill as reference for the smallholders. Minor Compliance 6.10.2 Evidence shall be FFB prices were made available at POM office’s external Notice Board Complied available that and mill office records. The POM has treated out-growers and other growers/millers have local business fairly. Pricing mechanism for FFB is fair and explained FFB pricing, and transparent as per MPOB approved / licensed graders and based pricing mechanisms for FFB and inputs/services MPOB specification. Current and past prices paid for FFB were shall be documented publicly available and verified through interviews. Mechanisms are (where these are under the available to the public upon request. control of the mill or plantation). Major Compliance 6.10.3 Evidence shall be Stakeholder interviews conducted during this assessment with Complied available that all parties suppliers, contractors, and relevant parties including local and foreign understand the contractual workers confirmed that understand the contractual agreements (such agreements they enter as terms and payment) they enter into with the PMU. They also into, and that contracts are fair, legal and transparent. consider the business transactions as fair and transparent. Minor Compliance 6.10.4 Agreed payments Agreed payments are made promptly within the 7th day of the following Complied shall be made in a timely month. Through interviews made, there is no evidence to suggest of manner. any unfair business practices with the local businesses. Minor Compliance Criterion 6.11 Growers and millers contribute to local sustainable development where appropriate. Indicators Findings and Objective Evidence Compliance 6.11.1 Contributions to File on social contributions and activities were maintained and noted Complied local development that are contributions issued for occasions such as local community activities, based on the results of religious, social, educational contributions for estate family members. consultation with local Contributions were demonstrated through JKKR as follows:- communities shall be demonstrated. • Free tuition and Quran reciting lesson for children of Felda staff and Minor Compliance smallholders • Allocation for educational budget to schools in the vicinity of the PMU as incentives for high achievers. 6.11.2 Where there are Felda through its subsidiary, FTP, has taken steps and making more Complied scheme smallholders, efforts to improve the productivity of the smallholders while adhering to there shall be evidence RSPO P&C. It was noted that there are smallholders, who opted to that efforts and/or manage their plots of lands on their own especially after the land titles resources have been have been transferred into their individual names. allocated to improve smallholder productivity Minor Compliance
Criterion 6.12 No forms of forced or trafficked labour are used. 6.12.1 There shall be Audit of employment records such as work permits in the estate offices Complied evidence that no forms of confirmed that all foreign workers were recruited through legal means forced or trafficked labour and according to the regulatory requirements. Unit Tenaga Kerja, are used. FELDA Global Ventures [FGV] is the main unit organising recruitment Major Compliance of new foreign workers in collaboration with private recruitment agencies in the country of origin. The PMU is responsible to allocate each foreign worker with suitable accommodation and offer them sufficient work each month.
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Interviews with foreign workers and their dependents in the housing are confirmed that there were no forced or trafficked labors. 6.12.2 Where applicable, it There was no evidence of contract substitution and this was confirmed Complied shall be demonstrated that from interviews with workers and relevant stakeholders. no contract substitution has occurred. Minor Compliance 6.12.3 Where temporary or The special policy on recruitment of foreign workers “Polisi Complied migrant workers are Pengambilan Pekerja Asing” and equal opportunities “Polisi employed, a special labour Kesetaraan Peluang” are established and the implementations are policy and procedures shall verified to be satisfactory. Review on employment contracts of foreign be established and implemented. workers also confirmed that the policies, including minimum wages have also been duly implemented. Major Compliance
Criterion 6.13 Growers and millers respect human rights. Indicators Findings and Objective Evidence Compliance 6.13.1 A policy to respect Polisi Hak Asasi Manusia dated 01 Jun 2014 has been documented to Complied human rights shall be respect human rights and communicated to all levels of the workforce documented and and operations. The policy found to be displayed at prominent communicated to all levels locations in the POM and estates. of the workforce and operations (see Criteria 1.2 and 2.1). Major Compliance
6.13.2 As long as children See 6.1.3 and 6.5.3 Not Applicable of plantation workers of Sabah and Sarawak are not secured a right to go to government school, the plantation companies should engage in a process to secure the children of the plantation workers access to education as a moral obligation. Minor Compliance
Principle 7: Responsible development of new plantings KKS Sg. Tengi PMU has documented procedures for this development but to date has not carried any new plantings after Nov 2005. Therefore, the requirements of Principle 7 are not applicable during this assessment.
Principle 8: Commitment to continuous improvement in key areas of activity
Criterion 8.1 Growers and millers regularly monitor and review their activities, and develop and implement action plans that allow demonstrable continual improvement in key operations. Indicators Findings and Objective Evidence Compliance
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8.1.1 The action plan for continual The POM has identified and implemented the following improvement shall be Continual Improvement Actions for the period 2014 to 2016 as implemented, based on a required: consideration of the main social 1. Biogas plant for power generation at Sg. Tengi POM. This and environmental impacts and opportunities of the grower/mill, project is managed by Felda Engineering Services which is the and shall include a range of engineering arm of the Felda Group. Indicators covered by these 2. BOD level at the final discharge point to be < 100 ppm. Principles and Criteria. 3. Reduce the consumption of diesel to < 1.2 litres/MT CPO As a minimum, these shall include, throughout year 2015. but are not necessarily be limited 4. Increase OER to 20.50%. to: 5. Moisture of PK < 6%.
• Reduction in use of pesticides 6. To achieve zero accident at the POM. (Criterion 4.6); 7. Repair and repainting of workers’ houses/ quarters and • Environmental impacts (Criteria playgrounds.
4.3, 5.1 and 5.2); 8. Contributions to schools and communities. • Waste reduction (Criterion 5.3); 9. Repair branch road from main road to the POM. • Pollution and greenhouse gas
(GHG) emissions (Criteria 5.6 and 7.8); The estates have identified and implemented the following
• Social impacts (Criterion 6.1); Continual Improvement Actions for the period 2014 to 2016 as
• Encourage optimising the yield of required: the supply base. 1. Reduce the consumption of pesticides. Major Compliance 2. Increase the acreage for beneficial plants ( tumera subulata ). 3. Increased recycling (used fertilizer bags, scrap iron, paper, plastic, glass). 4. Increase the area of subsoil fertilized. 5. Build badminton court for FTP workers - completion verified during the audit. 6. Repair and repainting of workers’ houses/ quarters. 7. Free tuition class for employees’ school children. 8. Increase FFB quality and yield.
Improvements in Social Activities for POM and Estates: 1. Continuous contribution to the local communities, school, government agencies and etc.
2. Continuous support on the workers social activities such as sports activities, religious activities and facilities. 3. New mosque and RELA building was built at Felda Sg. Tengi estate. 4. Road repair and maintenance within the PMU 5. New housing for foreign workers
Evidence of results was available for the above continuous improvement action plans.
3.1.1 Supply Chain Certification Standards Findings - on CPO Mill
The Supply Chain model applied at KKS Sg. Tengi POM during this assessment is Module E – CPO Mills: Mass Balance (MB).
Details of findings are as follows:
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E.1 Definition Indicators Findings and Objective Evidence Compliance E.1.1 Complied Certification for CPO mills is The POM processed FFB from its own supply base and necessary to verify the volumes of Outside Crop Producers (see Section 1.3 ). The CPO Mill is certified and uncertified FFB therefore applying the Mass Balance (MB) module. entering the mill and volume sales of RSPO certified producers. A mill may be taking delivery of FFB from uncertified growers, in addition to those from its own certified land base. In that scenario, the mill can claim only the volume of oil palm products produced from processing of the certified F FB as MB. E.2 Explanation Indicators Findings and Objective Evidence Compliance E.2.1 Complied The estimated tonnage of CPO and The estimated tonnage of CPO and PK products that could PK products that could potentially potentially be produced by the POM is recorded in this be produced by the certified mill Assessment Report. This figure represents the total volume must be recorded by the CB in the of certified palm oil product (CPO and PK) that the certified public summary of the P&C mill is allowed to deliver in a year. The actual tonnage certification report. produced has been recorded in each annual surveillance This figure represents the total report (see Section 1.8.2 Table 6 and Section 1.8.3 Table volume of certified palm oil product 7). (CPO and PK) that the certified mill is allowed to deliver in a year. The actual tonnage produced should then be recorded in each subsequent annual surveillance report. E.2.2 The POM meets all registration and reporting requirements Complied The mill must also meet all for the appropriate supply chain through the RSPO Supply registration and reporting Chain managing organization (RSPO IT platform or Book and requirements for the appropriate Claim). supply chain through the RSPO supply chain managing organization (RSPO IT platform or book and claim).
E.3 Documented procedures E.3.1 A documented Supply Chain Procedure Doc No. FGVPM- Complied The site shall have written RSPO SCCS Issue 2.0 Rev 1.0 (Effective 21 Mar 2015) SOP procedures and/or work instructions for Mill RSPO Supply Chain Certification System has been to ensure the implementation of all established and implemented. the elements specified in these The procedure covered the implementation of all elements of requirements. This shall include at MB Module that include Organization Chart, Management minimum the following: Functions & Job Descriptions, Claims, FFB Delivery Plantation to Mill, CPO/PK Delivery Mill to customer, Record Keeping, Training. a) Complete and up to date The documented procedure and its implementation confirmed Complied procedures covering the to have complied with all the specified requirements of Mass implementation of all the elements Balance (MB) Module E. in these requirements b) The name of the person having The Sg. Tengi POM Mill Manager, Mr. Muhammad Ikhwan Complied overall responsibility for and Ismail (contact no: 013-3699223 authority over the implementation of email:[email protected] ) has been appointed as the
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Report No.: R9297 /14 -2 Felda Global Ventures Plantations (Malaysia) Sdn Bhd Page 48 of 80 KKS Sg. Tengi Grouping: ASA-01 these requirements and compliance person in charge for the overall responsibility and authority for with all applicable requirements. implementation and compliance with the documented This person shall be able to procedure. demonstrate awareness of the site’s He is assisted by two Assistant Mill Managers, Encik Ahmad procedures for the implementation of this standard. Syakir bin Abdul Latif and Encik Hisyam bin Md. Sabri. He and other relevant staff under his charge demonstrated
competence, skill and knowledge of the RSPO Supply Chain Certification Standard Module E requirements and its implementation. Interviews of the relevant staff confirmed their knowledge of the RSPO Supply Chain Certification requirements for the respective areas of operations. The Palm Oil Mill Organization Chart and job responsibilities of employees (Mill Manager, Assistant Managers, Engineers, Assistant Engineers, Technicians, Security Officer, Weighbridge Operator, Laboratory Chemist and clerks) have been suitably defined in the SOP. E.3.2 The SOP covers the receiving of FFB supply from the PMU Complied The site shall have documented estates and Outside Crop Producers. All supplies of FFB procedures for receiving and were subjected to verification of documents (delivery notes) processing certified and non- to determine the origin, quantity and quality of the FFB. certified FFBs. The Weighbridge Ticket for FFB indicated the date, vehicle number, estate & field number, harvesting date, security seal number and weight. All Storage tanks at the POM are designated as Mass Balance CPO and PK. Monthly FFB and CPO/PK Report and YTD Report for the year 2014 and Jan –Sep 2015 were verified to have complied with requirements of the MB Module whereby the Palm Oil Mill received and processed FFB from its own estates and Outside Crop Producers. E.4 Purchasing and goods in Indicators Findings and Objective Evidence Compliance E.4.1 The Mill verifies and records tonnages and supply source of Complied The facility shall verify and FFB received at the weighbridge in the delivery notes and document the tonnages and weighbridge tickets and all FFB data are entered by the sources of certified and non- weighing clerk into the Felda computer system or reporting certified FFBs received. spreadsheet every day. Daily and monthly reports are submitted to the Regional Office and Kuala Lumpur Head Office through the Mill Performance Report (MPR) system. Production Report for year 2014 and Jan–Sep 2015 verified to be Mass Balance palm products. Satisfactory performance of deliveries of FFB made by transport contractors hired by the estates. Noted that there are FFB from Outside Crop Producers received and processed by the POM, which are considered as non-certified FFB using the Mass Balance Module.
E.4.2 The documented Supply Chain SOP has specified that the Complied The facility shall inform the CB responsible POM personnel shall check production quantity immediately if there is a projected against the certified amount and notify RSPO, the CB and overproduction of certified tonnage. Sustainability Department of any projected overproduction of certified tonnage. So far, there is no projected overproduction.
E.5 Record keeping Indicators Findings and Objective Evidence Compliance
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E.5.1 As per the SOP, the records are archived and to be stored for Complied a) The site shall record and balance a minimum of 10 years. all receipts of RSPO certified FFB Traceability was verified for the production reports for year and deliveries of RSPO certified 2014 and Jan-Sep 2015 from the related records (FFB CPO and PK on a three-monthly Delivery Note, Weigh Ticket, FFB & Truck Daily Summary, basis. Production Report, CPO & PK Storage Report, and CPO & b) All volumes of palm oil and palm PK Delivery Orders. kernel oil that are delivered are Transaction documents and bookkeeping of CPO and PK are deducted from the material done daily and monthly summary report of FFB receipt, FFB accounting system according to processed, CPO production, PK production and balance conversion ratios stated by RSPO. stocks submitted to the Regional Office and Kuala Lumpur c) The site can only deliver Mass Head Office. Balance sales from a positive stock. The two weighbridges at the Mill are duly calibrated and Positive stock can include product calibration certificates found to be in order. ordered for delivery within three months. However, a site is allowed CPO is sold to a Felda subsidiary company, Felda Iffco Sdn. to sell short.(ie product can be sold Bhd. at Port Klang or other buyers.
before it is in stock). There is no Palm Kernel mill for production of PKO at the POM. PK sold and delivered to the Kernel Crushing Plant at Port Klang. Deduction and conversion ratios for the volumes of CPO and PK delivered from the Palm Oil Mill have been appropriately done and recorded. All deliveries of the MB sales are from positive stock. The POM had maintained a monthly summary of all receipts of FFB, production tonnage and dispatch of CPO and PK. This inventory is balanced every 3 months.
E.5.2 Not In cases where a mill outsources No outsourcing of activities. Applicable activities to an independent (not owned by the same organization) palm kernel crush, the crush still falls under the responsibility of the mill and does not need to be separately certified. The mill has to ensure that the crush is covered through a signed and enforceable agreement.
3.1.2 Status on Supply Chain on POM: Based on the documents and records presented during the on-site verifications made, it is concluded that the Felda KKS Sg. Tengi POM has been able to comply with the requirements of the RSPO SCCS under the ‘MB’ module and is thus eligible for ‘MB’ trading for its palm products for year 2015/2016.
3.1.3 Monitoring of CSPO and CSPK traded:
Trading of CSPO and CSPK are via RSPO eTrace, GreenPalm and ISCC e-platforms. The records maintained at the POM relied on internal communications from the trading arm of FGVPM, i.e. the Logistics Department based at the HQ, Kuala Lumpur. Based on records maintained at the POM, the tonnages of CSPO traded as verified during assessment are as follows:
CSPO - Actual CSPK - Actual CSPO - Actual CSPK - Actual Jan–Dec 2014 Jan–Dec 2014 Jan–Oct 2015 Jan–Oct 2015 (MT) (MT) (MT) (MT) RSPO Not applicable Not applicable 770.24 4,561.36 ISCC Not applicable Not applicable Not applicable Not applicable Book & Claim Not applicable Not applicable 2,000 0 Total Traded Not applicable Not applicable 2,770.24 4,561.36 Actual Produced 19,469.78 5,729.39
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Notes: • Based on records maintained at the POM, it was verified that the total tonnage of CSPO traded has not exceeded the annual certified quantity. • PK are delivered to Felda subsidiary palm kernel crushing plant at Port Klang.
3.2 Status of Identified Noncompliance and Corrective Actions, Observations and Positive Elements. The status of the Noncompliances (NCR) and Observations (OBS) identified against the MYNI Compliance Indicators is as per the details below:
Assessment Type Year Noncompliance (NCR) Observations Follow up status (OBS)
Main Assessment 2014 10 ( 6 Major and 4 Minor) 1 Actions taken on the NCRs (except for Major NC# OCL-03, Minor NC# SH-03 and Minor NC# SH-04) verified to be effective during ASA-01. Annual Surveillance-01 2015 8 ( 5 Major and 3 Minor) 3 Next surveillance
3.2.1 Year 2014 Main Assessment: 10 NCRs ( 6 Major and 4 Minor)
NCR # MYNI Details of NCR Indicator MAJOR 2.2.2 Date issued: 02 Oct 2014 OCL-01 Nonconformance: Maps provided by all the estates are of poor quality and did not show clearly the latitude and longitude.
Root Cause and Corrective Action:
Maps (E-GIS) of estates with latitude and longitude are in process of preparation by the HQ Land Unit .
PSQM Department at HQ and the Felda Regional Office had obtained the maps from the Land Unit and submitted the maps to the Lead Auditor. Copies of these maps are then to be kept in the estates.
Verification for closure: Maps submitted for all the estates in the PMU verified to be satisfactory.
NC status verified by auditor: Closed by OCL Date closed: 14 Nov 2014 Verification of effectiveness: Verified during ASA-01 that the corrective action taken was implemented effectively. NC status verified by auditor: OCL Date verified: 05/10/2015
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NCR # MYNI Details of NCR Indicator MAJOR 4.6.2 Date issued: 02 Oct 2014 OCL-02 Nonconformance: There were no monitoring and records of application of pesticides by the FELDA Smallholders and hence it is not possible to determine the effectiveness of best practice in Integrated Pest Management.
Root Cause and Corrective Action: Lack of understanding by estate management regarding the requirement for monitoring the self managed FELDA smallholders. Also, lack of enforcement by the estate management concerning the storage and handling of pesticides and used pesticides containers.
Training conducted on 12 Nov 2014 for the self managed FELDA smallholders concerning usage, handling and storage of pesticides and PPE. Photo and attendance list indicated the training attended by all pesticides operator. Records of application of pesticides and the usage per ha were available. Agriculture Officer and Safety & Health Officer will make inspection to check the records and the handling of pesticides and used pesticides containers.
Verification for closure: On site verification carried out. Actions taken and evidence submitted found to satisfactorily address the nonconformance. NC status verified by auditor: Closed by OCL Date closed: 14 Nov 2014 Verification of effectiveness: Verified during ASA-01 that the corrective action taken was implemented effectively. NC status verified by auditor: OCL Date verified: 05/10/2015
NCR # MYNI Details of NCR Indicator MAJOR 4.6.11 Date issued: 02 Oct 2014 OCL-03 Nonconformance: At the Sg. Tengi Selatan estate, the pesticide operation is carried out by subcontractor’s workers. There were no records of medical surveillance for these pesticide operators. Therefore, it is not possible to determine whether any of these workers have medical disorders or symptoms of toxic reaction and thus not fit for work with pesticides.
Root Cause and Corrective Action: Lack of understanding by estate management regarding the requirement for medical surveillance for contractor’s pesticides operators.
A list of mandore and pesticides operators was established. All of them were sent for medical surveillance as stated in CHRA. Agriculture Officer and Safety & Health Officer will make inspection checks to ensure that those concerned are sent for medical surveillance.
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Verification for closure: On site verification carried out. Medical reports indicated that the pesticides operators are not showing any symptoms of toxic reactions due to work with pesticides. Actions taken and evidence submitted found to satisfactorily address the nonconformance. NC status verified by auditor: Closed by OCL Date closed: 14 Nov 2014 Verification of effectiveness: During ASA-01 the same non-conformance occurred at the estates that were not assessed previously. A major non-conformance issued with a note on suspension inserted in the report if no effective action taken. NC status verified by auditor: OCL Date verified: 05/10/2015
NCR # MYNI Details of NCR Indicator MAJOR 6.9.1 Date issued: 02 Oct 2014 JMD-01 Nonconformance: Briefing sessions on sexual harassment issues were only delivered to committee members such as KKD, GPW and Jawatankuasa Bertindak Wanita. These briefing sessions did not include all the relevant parties such as male workers, contractors, settlers and youths.
Root Cause and Corrective Action: No enforcement by management due to non-involvement in the committee.
Chairman of the Sg. Tengi Complex JCC appointed as the patron of the Gender Committee. A programme was carried out to explain to all workers (male and female), contractors, smallholders and youths regarding sexual and all forms of harassment and violence.
Verification for closure: On site verification carried out. Actions taken and evidences (Letter of appointment, List of attendees, photos for the programme conducted on 24 Oct 2014) submitted found to satisfactorily address the nonconformance.
NC status verified by auditor: Closed by OCL Date closed: 14 Nov 2014 Verification of effectiveness: Verified during ASA-01 that the corrective action taken was implemented effectively. NC status verified by auditor: OCL Date verified: 05/10/2015
NCR # MYNI Details of NCR Indicator MAJOR 6.5.2 Date issued: 02 Oct 2014
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JMD-02 Nonconformance: 1. According to policy, POM and Felda TechnoPlant staff are allowed to carry forward a maximum of seven days of unused annual leave to the following year. Any extra unused annual leave is considered forfeited.
2. According to policy, all allowable unused annual leave carried forward by POM and Felda TechnoPlant staff to the following year must be utilized before end of March of that year.
The above policies are not in compliance to the Employment Act 1955, 62 E (2) where it is stated that workers are allowed to carry forward unlimited number of days of annual leave to the following year and valid until end of December of that year.
Root Cause and Corrective Action: The staff did not have clear information concerning the content of the Collective Agreement.
All staff were given a copy of the Collective Agreement and Management Directive no. 31 allowing the carrying forward of 7 days of unused annual leave not taken for the year and to be used until end March of the following year. The Collective Agreement is not in conflict with the Employment Act 1955. Verification for closure: On site verification carried out. Actions taken and evidence submitted found to satisfactorily address the nonconformance. NC status verified by auditor: Closed by OCL Date closed: 14 Nov 2014 Verification of effectiveness: Verified during ASA-01 that the corrective action taken was implemented effectively. NC status verified by auditor: OCL Date verified: 05/10/2015
NCR # MYNI Details of NCR Indicator MAJOR 6.5.3 Date issued: 02 Oct 2014 JMD-03 Nonconformance: It was found in both Felda Sg. Tengi Selatan and Gedangsa estates, the records of weekly workers’ housing inspection were not maintained. Maintenance of this record is stipulated under Workers’ Minimum Standards of Housing And Amenities Act 1990 [Act 446], 23(2).
Root Cause and Corrective Action: No officer was made to be responsible and lack of understanding by estate management concerning the requirement for inspection of the workers’ housing.
An Officer had been appointed to conduct inspection of workers’ housing at least weekly. Records of the inspections maintained. Estate management checked on the records of inspections at a monthly basis. Verification for closure: On site verification carried out. Actions taken and evidence submitted (letter of appointment, records of inspection and checks by estate management) found to satisfactorily address the nonconformance. NC status verified by auditor: Closed by OCL Date closed: 14 Nov 2014 Verification of effectiveness: Verified during ASA-01 that the corrective action taken was implemented effectively.
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NC status verified by auditor: OCL Date verified: 05/10/2015
NCR # MYNI Details of NCR Indicator MINOR 5.1.2 Date issued: 02 Oct 2014 SH-01 Nonconformance: The Management plan for mitigation of environmental impacts, timeframe for action and responsible persons were not adequately followed up by the Estate managers.
At the Sg. Tengi Selatan estate, no signage was placed at the swamp area identified and also the extent of the swamp area was not clearly demarcated. Also, there was no signage at the pond located near the village area to show the prohibited activities.
At Felda Gedangsa estate, no demarcation of riparian zone for the conservation areas identified (such areas are not suitable for planting and left in its natural condition/state).
At the palm oil mill, no signage was observed at the pond area located just outside the mill.
Root Cause and Corrective Action: Budget allocation for RSPO activities was only approved recently. Preparation and installation of signages and demarcation of buffer zones still not fully completed.
The POM and estates had made the necessary signages and erected them at the locations as required. Demarcation of buffer zones also carried out.
Verification for closure: On site verification carried out. Actions taken and evidences (including photos) submitted found to satisfactorily address the nonconformance. NC status verified by auditor: Closed by OCL Date closed: 14 Nov 2014 Verification of effectiveness: Verified during ASA-01 that the corrective action taken was implemented effectively. NC status verified by auditor: OCL Date verified: 05/10/2015
NCR # MYNI Details of NCR Indicator MINOR 5.1.3 Date issued: 02 Oct 2014 SH-02 Nonconformance: At both Sg. Tengi Selatan and Gedangsa estates, it was discovered that the disposal of plantation waste materials was not properly monitored and recorded. The waste materials, mostly fertilizer bags and plastics, were strewn everywhere. Monitoring and implementation of the environmental improvement plan were not adhered to.
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Root Cause and Corrective Action: Lack of awareness among the smallholders and workers concerning the proper disposal of plantation wastes materials (fertilizer bags and plastic).
Estate management had conducted training for all smallholders, workers and contractors concerning the proper disposal of plantation wastes and its enforcement. It has also issued a memo dated 24 Oct 2014 concerning the return of fertilizer bags after use and the recycling of plastic and other wastes. Attendance List and report of the training were available.
Verification for closure: On site verification carried out. Actions taken and evidences (memo, attendance list, report of the training, photos and records of return of fertilizer bags) submitted found to satisfactorily address the nonconformance.
NC status verified by auditor: Closed by OCL Date closed: 14 Nov 2014 Verification of effectiveness: Verified during ASA-01 that the corrective action taken was implemented effectively. NC status verified by auditor: OCL Date verified: 05/10/2015
NCR # MYNI Details of NCR Indicator MINOR 5.2.3 Date issued: 02 Oct 2014 SH-03 Nonconformance: Information on rare, threatened and endangered species were inadequately disseminated to the workers and settlers.
Root Cause and Corrective Action: Lack of understanding by estate management regarding the requirement for an awareness programme on RTE for smallholders and workers.
The regional management had sponsored the awareness programme on RTE for smallholders and workers. The programme was conducted by a senior Wildlife Officer from Jabatan Perhilitan on 06 Nov 2014 at the Public Hall, Felda Sg. Tengi Selatan.
Verification for closure: On site verification carried out. Actions taken and evidences (attendance list, report of the programme and photos) submitted found to satisfactorily address the nonconformance.
NC status verified by auditor: Closed by OCL Date closed: 14 Nov 2014 Verification (for effectiveness): During ASA-01 the same non-conformance occurred at the estates that were not assessed previously. The minor non-conformance was re-issued without upgrading to a major non- conformance as it occurred at the estates that were not assessed previously. NC status verified by auditor: OCL Date verified: 05/10/2015
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NCR # MYNI Details of NCR Indicator MINOR 5.3.3 Date issued: 02 Oct 2014 SH-04 Nonconformance: The solid waste management and disposal plan using landfill were available at both the mill and estates. However, it was found to be poorly implemented and monitored.
At the mill, there was no signage on safety and waste disposal placed at the area. The effluent pond operated by the mill also lack signage to indicate the prohibited activities in the area. Also, a heap of waste materials was found near the entrance to the mill.
At both Sg. Tengi Selatan and Gedangsa estates, it was found that the wastes were scattered all over the places at the dumpsite and no proper segregation into organic and inorganic waste.
Root Cause and Corrective Action: Lack of understanding on the issues raised.
The mill and estate management had taken actions to remove all the waste materials and dispose them in proper landfills. Also the areas concerned were cleaned up. Proper signages have been erected at the sites of the landfills.
Verification for closure: On site verification carried out. Actions taken and evidence (photos) submitted found to satisfactorily address the nonconformance.
NC status verified by auditor: Closed by OCL Date closed: 14 Nov 2014 Verification (for effectiveness): During ASA-01 the same non-conformance occurred at the mill and the estates that were not assessed previously. As this non-conformance had been raised against the mill in the previous assessment, this finding is now upgraded to Major NC as it is a recurring non- conformance. NC status verified by auditor: OCL Date verified: 05/10/2015
3.2.2 Year 2015 ASA-01: 8 NCRs (5 Major and 3 Minor)
NCR MYNI Details of NCR Indicator Major 4.6.5 Date issued: 08/10/2015 OCL-01 Nonconformance: 1. At the chemical store and mixing area at Soeharto estate, MSDS for some chemicals such as Garlon Mix, Action 13SL (paraquat) and Rondup Rainguard were not available. At the chemical store at Sungai Tengi estate, MSDS was not available for Butiks (rat bait). 2. It was found that chemical mixing area at Sungai Tengi estate is not appropriately designed with a secondary containment to prevent leaking chemical causing environmental contamination. Also, there is no shower unit for emergency purpose.
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Root Cause and Corrective Action: Lack of monitoring by the estate management on the OSHA requirement.
The MSDS for the chemicals: Garlon Mix, Action 13SL (paraquat) and Rondup Rainguard were documented and displayed at the chemical store and mixing area at Soeharto Estate.
Application by Sg. Tengi Estate for budget allocation to upgrade the chemical mixing facility in accordance with OSHA standard (with a containment for accidental spillage and an emergency shower unit).
Verification (Corrective Action): On-site verification carried out. Verified that the MSDS for the said chemicals are available at the chemical stores. The application for the upgrading of the chemical mixing area had been made and the facility is expected to be completed within 3 months. With this corrective action, this Major NC is retained as a Minor NC subject to a verification of the completed facility. NC status verified by auditor: Major NC Date closed: 27/11/2015 downgraded to Minor NC by OCL Verification (for effectiveness): At next ASA-02
NCR MYNI Details of NCR Indicator Major 4.6.11 Date issued: 08/10/2015 OCL-02 Nonconformance: At both Soeharto and Sungai Tengi estates, the annual medical surveillance has not been conducted for subcontractor’s workers carrying out pesticide spraying. Root Cause and Corrective Action: Lack of monitoring by the estate management on the requirement for the annual medical surveillance for subcontractor’s workers involved in pesticide spraying.
Directive issued to subcontractor to send their workers involved in pesticide spraying for the annual medical surveillance.
Verification (Corrective Action): On-site verification carried out. Verified that the pesticide sprayers have been sent for the medical surveillance. The medical results indicated that these pesticide sprayers are fit for this type of work. The corrective action satisfactorily addressed the non- conformance. NC status verified by auditor: Closed by OCL Date closed: 27/11/2015 Verification (for effectiveness): At next ASA-02
NCR MYNI Details of NCR Indicator Major 4.7.3 Date issued: 08/10/2015 OCL-03 Nonconformance: During field visit at Soeharto estate, 4 out of the 11 harvesting workers were found to be not wearing PPE (safety helmets, mask and gloves) that were provided to them.
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Root Cause and Corrective Action: Lack of monitoring and enforcement by the estate management on the OSH compliance requirement for the usage of PPE.
Briefing and training to harvesters on the usage of PPE by the harvesters Directive to Mandore and Supervisors on the enforcement on usage of PPE.
Verification (Corrective Action): On-site verification carried out. Verified that the briefing and training have been conducted. Attendance list, photos and records are available as evidence. The corrective action satisfactorily addressed the non-conformance. NC status verified by auditor: Closed by OCL Date closed: 27/11/2015 Verification (for effectiveness): At next ASA-02
NCR MYNI Details of NCR Indicator Major 5.3.3 Date issued: 08/10/2015 SH-01 Nonconformance: The solid waste management and disposal plan using landfill were available at both the mill and estates. However, it was found to be poorly implemented and monitored.
At the mill, there was no signage to indicate the designated area meant for metal waste. The metal waste found to be placed all over the place. In addition, the dumpsite for the organic waste, especially EFB, was not properly managed and monitored.
At both Felda Soeharto estate and Felda Sungai Tengi estate, it was found that household wastes were scattered all over the places at the dumpsite.
As this non-conformance had been raised in the previous assessment, this finding is now upgraded to Major NC as it is a recurring non-conformance.
Root Cause and Corrective Action: Lack of compliance by the estate management on 3R policy and the landfill for waste disposal.
Actions taken by POM 1) A designated area prepared for collection, segregation and disposal of wastes. 2) An officer appointed for monitoring the performance of the subcontractor and instructions recorded in the minutes of meetings. 3) A signboard erected at the metal waste storage area.
Actions taken by Soeharto and Sg Tengi Estates 1) A designated area prepared for collection, segregation and disposal of wastes. 2) An officer appointed for monitoring the performance of the subcontractor and instructions recorded in the minutes of meetings. 3) A record of monitoring on the collection of wastes and disposal at a proper landfill.
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Verification (Corrective Action): On-site verification carried out. Verified that there is a signboard erected at the designated area for the metal waste. Verified that the landfills at the estates have been prepared and the scattered wastes placed in the landfills. The corrective action satisfactorily addressed the non- conformance. NC status verified by auditor: Closed by OCL Date closed: 27/11/2015 Verification (for effectiveness): At next ASA-02
NCR MYNI Details of NCR Indicator Major 6.1.3 Date issued: 08/10/2015 MNM-01 Nonconformance: Plan for the avoidance or mitigation of negative impact and promotion of positive impact (Jadual Masa Pelan) arising from the Social Impact Assessment (SIA) for the POM and estates (Felda Soeharto estate and Felda Sungai Tengi estate) was not updated and documented to include the following changes: (1) New infrastructure built such as new mosque and RELA building at Sungai Tengi Estate (2) Closure of the Tadika KEMAS at the POM housing areas.
Root Cause and Corrective Action: Lack of monitoring by the estate management on the requirement for preparation of an action plan.
Action Plan for positive and negative impacts updated to include the various changes at the POM and estates.
Verification (Corrective Action): On-site verification carried out. Verified that social impact assessments were carried out by the estates and POM on 02/11/2015 and 22/11/2015 respectively. There are updated Action Plans for the mitigation of negative impact and promotion of positive impact. The corrective action satisfactorily addressed the non-conformance. NC status verified by auditor: Closed by OCL Date closed: 27/11/2015 Verification (for effectiveness): At next ASA-02
NCR MYNI Details of NCR Indicator Minor 4.7.5 Date issued: 08/10/2015 OCL-01 Nonconformance: It was found during the visit to the POM, a first aid box located at the water treatment area is empty and in broken condition. Root Cause and Corrective Action: Lack of monitoring by the POM on the OSHA requirement.
First Aid Box at the water treatment area repaired and re-stocked.
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Verification (Corrective Action): On-site verification carried out. Verified that there is a new First Aid Box at the said location and found to be filled with the necessary items and with emergency contact numbers. The corrective action satisfactorily addressed the non-conformance. NC status verified by auditor: Closed by OCL Date closed: 27/11/2015 Verification (for effectiveness): At next ASA-02
NCR MYNI Details of NCR Indicator Minor 5.2.3 Date issued: 08/10/2015 SH-01 Nonconformance: Information on rare, threatened and endangered species were inadequately disseminated to the workforce and community and not being implemented accordingly. There was no evidence or record of it being implemented at both estates (Felda Soeharto and Felda Sungai Tengi) and no appropriate measures taken in line with company laws and national regulation. In addition, signages informing activities that are prohibited were not sufficiently placed at the area bordering the forest reserve, Hutan Simpan Ulu Bernam.
Root Cause and Corrective Action: The management did not ensure that information on HCV and RTE were adequately disseminated as required. No communication with the government agencies (forestry and wildlife) and their involvement.
Discussion and meeting with the representatives from the Forestry Department and Wildlife Department and minutes/record maintained. Erection of sign board indicating the prohibited activities at the area bordering the forest reserve. Location map of the signboard.
Verification (Corrective Action): On-site verification carried out. Verified that a Stakeholders Program was held at the Wildlife Department on 24/11/2015 and attended by 35 persons from various categories of stakeholders. The corrective action satisfactorily addressed the non- conformance. NC status verified by auditor: Closed by OCL Date closed: 27/11/2015 Verification (for effectiveness): At next ASA-02
NCR MYNI Details of NCR Indicator Minor 6.2.3 Date issued: 08/10/2015 MNM-01 Nonconformance: List of stakeholder for POM and estates audited (Felda Soeharto estate and Felda Sungai Tengi estate) was not updated to include affected parties such as smallholders, NGOs, Government agencies, FFB suppliers, contractors and suppliers.
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Root Cause and Corrective Action: Lack of monitoring by the POM and estates on updating of the stakeholders lists
List of stakeholder for POM and estates audited updated to include affected parties such as smallholders, NGOs, Government agencies, FFB suppliers, contractors and suppliers.
Verification (Corrective Action): On-site verification carried out. Verified that the updated stakeholders lists of the POM and estates include all the relevant stakeholders. The corrective action satisfactorily addressed the non-conformance. NC status verified by auditor: Closed by OCL Date closed: 27/11/2015 Verification (for effectiveness): At next ASA-02
3.2.3 Year 2014 Main Assessment: 1 Observation Status RSPO Opened Closed Remark, Ref No: P&C Location Details of Observation date date if any Indicator
OBS # 6.5.2 Mill & Contracts awarded to contractors 02 Oct 05 Oct Closed during JM-01 Estates did not specifically mention that all 2014 2015 ASA-01 workers hired enter and work in the country legally. Assessment manual of contractors during tender period also did not specifically mention that status of the workers hired by the contractors must be legal.
3.2.4 Year 2015 ASA-01: 3 Observations Status RSPO Opened Closed Remark, Ref No: P&C Location Details of Observation date date if any Indicator
OBS: 4.4.2 Estates There were insufficient signages to 8 Oct - - OCL-01 denote the specific prohibited 2015 activities for the buffer zones in the estates.
OBS: 5.2.2 Estates There were insufficient signages to 8 Oct - - SH-01 denote the specific prohibited 2015 activities for areas bordering the forest reserves.
OBS: 6.2.3 POM & At the stakeholder consultation 8 Oct - - MNM- Estates conducted during the ASA-01 2015 01 assessment, a majority of the stakeholders expressed that they lack awareness and information regarding RSPO requirements.
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3.2.5 Identified Positive Elements
(1) The PMU has provided proper infrastructure such as multi-purpose hall, roads, housing, grocery shops and sport facilities.
(2) The PMU has contributed towards the local economy and has made significant financial contributions to the local communities such as free tuition class and festive celebration contributions.
3.3 Feedback Raised by Stakeholders and Findings
Prior to and during the Assessment, written and verbal feedback communicated from the stakeholders on the environmental and social performance of KKS Sg. Tengi PMU operations were sourced. All pertinent feedback issues were reviewed and followed up for verification and these had been accordingly incorporated into the report findings. See tables below:
3.3.1 Feedback Raised by Stakeholders (Main Assessment – Year 2014)
Stakeholders’ Feedback PMU Response CB verification / Follow up comments comments (if any) Government Agencies: Communication done via email on 27 March 2014. See list Ongoing consultations will Verified during on-site Nil under para 2.5. be maintained. assessment that no
No feedback received. No response needed. response needed. Non-Governmental Organizations: Communication done via email on 27 March 2014. See list Ongoing consultations will Verified during on-site Nil under para 2.5. be maintained. assessment that no No feedback received. No response needed. response needed.
Local Communities - Stakeholders’ Consultation Followed up during ASA-01: and interviews: A total of 12 stakeholders 1. Schedule to maintain the 1. Verified during on-site Nil comprising of Village heads, roads are ongoing. assessment that the road Contractors, Suppliers, Sometimes the roads may maintenance programs are Transporters, Government be easily damaged due to satisfactorily implemented. agencies was interviewed incessant heavy rain and during the on-site assessment. maintenance is not due at 2. Verified during on-site that particular time. assessment that the safety Concerns and suggestions training provided had raised include: 2. Contractors have been included the contractors.. 1. Estate roads and roads briefed on the importance of leading to villages are safety practice and depend 3. Verified during on-site sometimes not maintained. on these contractors to relay assessment that domestic such information to their waste disposal to landfill 2. There is a need for the workers. Ongoing briefing was implemented. management to promote the sessions to the contractors importance of safety practice and their workers will to the contractor’s workers. continue to be done.
3. Rubbish are not collected 3. A contractor to collect and left to be piled up. rubbish and dispose of it in the landfill has already been appointed and monitored. Monitoring of rubbish disposal will be continued
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and other landfill locations will be planned.
Other Interested parties: No response needed. No response needed. NA No feedback received.
3.3.2 Feedback Raised by Stakeholders (Surveillance Assessment ASA-01 – Year 2015)
Stakeholders’ Feedback PMU Response CB verification / Follow up comments comments (if any) Government Agencies: Communication done via email on 07 Aug 2015. See list Ongoing consultations will Verified during on-site Nil under para 2.5. be maintained. assessment that no No feedback received. No response needed. response needed.
Non-Governmental Organizations: Communication done via email Ongoing consultations will Verified during on-site Nil on 07 Aug 2015. See list be maintained. assessment that no under para 2.5. No response needed. response needed. No feedback received.
Local Communities - Stakeholders’ Consultation: At Felda Sg. Tengi PMU, a total of 57 stakeholders were present at the Stakeholders Consultation, comprising of: Gender Committee members – 8, Workers (local and foreign workers) – 26, Contractors/suppliers – 11, FFB Suppliers – 2, Independent smallholders – 0, Local community (School & Clinics) – 2, Government agencies (Auxilliary Police, Firefighters) – 2, NGO’s – 7. and Head of Village – 1 They were interviewed by the auditors without the presence of any Felda staff.
Concerns and suggestions The PMU was briefed by the To be followed up during the - raised include: auditors at the closing next Annual Surveillance 1. Only one issue raised meeting on the concern Assessment. regarding the high numbers of raided by the stakeholders. monkeys in the PMU and The PMU acknowledged the surrounding areas. request and will forward an PERHILITAN requested for a official complaint to written application/complaint PERHILITAN on the wildlife related to wildlife issues (i.e. issues. monkeys etc.)
Local Communities - Interviews:
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Interviews of sampled staff and workers were also conducted by the auditors during field visits from 05 to 08 Oct 2015 at the PMU: No response needed. No response needed. Nil No issues raised by the sampled staff and workers.
Other Interested parties: No response needed. No response needed. Nil No feedback received.
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4.0 ASSESSMENT CONCLUSION AND RECOMMENDATION
Based on the findings above, FELDA KKS Sg. Tengi Grouping had been able to demonstrate its compliance with the RSPO Principles and Criteria (April 2013), Malaysian National Interpretation (MY-NI 2014) and the RSPO Supply Chain Certification Standard (Nov 2014) for Palm Oil Mill.
Therefore, it is recommended that the certification of FELDA KKS Sg. Tengi Grouping be approved and continued.
Signed for and on behalf of Intertek Certification International Sdn Bhd
Dr. Ooi Cheng Lee Lead Assessor
Date: 01 Dec 2015
4.1 Acknowledgement of Internal Responsibility and Confirmation of Assessment Findings
This is to acknowledge and confirm the assessment visits described in this report and the acceptance of the contents and findings in this assessment report.
Signed for and on behalf of Felda Global Ventures Plantations (M) Sdn Bhd
Mr. Norazam Abdul Hameed Head, Plantation Sustainability & Quality Management
Date: 01 Dec 2015
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4.2 INTERTEK- RSPO P&C Certificate details for KKS Sg. Tengi Grouping (ASA-01)
Certificate No: RSPO 929788 Original Issue date: 04 Dec 2014 New Certificate date (ASA-01): 03 Dec 2015 Expiry date: 03 Dec 2019 Felda Global Ventures Plantations (Malaysia) Sdn Bhd Organization Address of Head Office: Felda Global Ventures Plantations (Malaysia) Sdn Bhd (FGVPM), Plantation Sustainability and Quality Management (PSQM) Department, Menara Felda Platinum Park, Level 20 No 11 Persiaran KLCC, 50088 Kuala Lumpur, Malaysia. RSPO Membership No: 1-0013-04-000-00 Plantation Management Unit: KKS Sg. Tengi Grouping
Address of POM: Kilang Sawit Sungai Tengi, 44100 Kuala Kubu Baharu, Selangor Darul Ehsan, Malaysia Standards: RSPO Principles and Criteria (Apr 2013); Malaysian National Interpretation (MY-NI 2014); RSPO Supply Chain Certification Standards (Nov 2014) for the Palm Oil Mill. Certification scope: Production of Crude Palm Oil and Palm Kernel Supply Chain model for Mass Balance (MB) CPO & PK:
Details of the Mill and Supply bases covered by this certificate are: GPS Reference Certified Name Address Latitude Longitude Area (ha) Sg. Tengi Mill - POM Kilang Sawit Sungai Tengi, 44100 Kuala Kubu Baharu, 3°35'9.93"N 101°24'56.17"E (Capacity: 54 MT/hr) Selangor Darul Ehsan, Malaysia Felda Gedangsa, 44010 Kuala FELDA/FTP Kubu Baharu, Selangor Darul 3°35'17.31"N 101°30'15.31"E Gedangsa estate Ehsan, Malaysia Felda Soeharto, 44010 Kuala FELDA/FTP Kubu Baharu, Selangor Darul 3°40'54.00"N 101°23'18.00"E 9,217.77 Soeharto estate Ehsan, Malaysia Felda Sg. Tengi Selatan, 44010 FELDA/FTP Sg Kuala Kubu Baharu, Selangor 3°37'9.00"N 101°25'30.00"E Tengi Selatan estate Darul Ehsan, Malaysia Felda Sg. Tengi, 44010 Kuala FELDA/FTP Sg Kubu Baharu, Selangor Darul 3°37'11.00"N 101°55'5.77"E Tengi estate Ehsan, Malaysia
The annual certified tonnages produced at the PMU are detailed as follows: KKS Sg. Tengi Annual Tonnages (MT) Certified FFB 98,000 Certified CPO 21,315 Certified PK 4,900
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Appendix A:
Qualifications of Lead Assessor and Assessment Team
Dr. Ooi Cheng Lee (OCL) Lead Assessor / Technical Expert (Palm Oil Mill, Environment, OHSAS, Social, HCV, Land Use and Supply Chain) - PhD in Welding, Cranfield University, UK - M.Sc. (Engineering) in Metallurgy, University of Birmingham, UK - B.App.Sc (Hons), Science University of Malaysia - Diploma in Translation for Science and Technology, Malaysia Translation Society
Dr. Ooi Cheng Lee is an IRCA Lead Auditor and Lead Tutor for ISO 9001. He is also involved in auditing in other integrated management systems. He has successfully completed the RSPO Lead Assessor Course for Principles and Criteria (RSPO P&C) and the RSPO Supply Chain Certifications (RSPO SCC). He is currently involved in the management of all types of system and process/product certification in Intertek. He has more than 32 years work experience in product and process specifications, research & development, inspection and testing, quality assurance, engineering development, training, product certification, auditing and quality management system certification. He has conducted assessments of organizations in Malaysia, Singapore, Indonesia, Vietnam, Philippines, China, Myanmar, Cambodia and other regional countries. Assessments include those of rubber and oil palm plantations in Malaysia and Indonesia. His previous position as the General Manager of Lloyd’s Register Quality Assurance (LRQA) Malaysia include the management of all types of systems certification, including that of environmental (ISO 14001), safety & health (OHSAS 18001) and Clean Development Mechanisms (CDM). He is currently the General Manager in Intertek Certification International Sdn. Bhd. He is a member of the Internal Review Panel for RSPO Assessment reports since May 2011. He is part of the RSPO CB Assessment team which audited RSPO certified Plantation Management Units since 2012.
Mr. Heru Tjatur Witjaksono (HTW) – Trainee Assessor / Technical Expert (Palm Oil Mill, Environment, Social, HCV area, Land Use and Supply Chain – As Trainee Assessor) - Master in Marine Technology and Bachelor in Fish Processing
Mr. Heru Witjaksono is an IRCA Lead Auditor for ISO 9001, ISO14001, OHSAS18001, ISO22000 / HACCP / BRC - Food Safety, ISCC and RSPO SCC. He has more than 15 years work experience in various fields including agricultural related industries such as fish and shrimp farming. He has been involved in Management Systems auditing and training for over 10 years in various manufacturing, engineering, plantation, service and government sectors both in Indonesia and Malaysia. Currently he is Business Certification Manager at PT Intertek Utama Services, Indonesia. He is has joined the RSPO P&C CB Assessment Team in August 2015 and was involved in the assessment of an RSPO certified Plantation Management Unit in Sabah, Malaysia.
Mr. Sazali Hasni – Assessor / Technical Expert (Environment, Conservation and HCV area) - Bachelor of Science (Forestry)
Mr. Sazali Hasni (SH) has over 25 years work experience in the forestry sector. He is an IRCA Auditor for ISO 9001 and auditor for the PEFC Chain-of-Custody Certification. He has successfully completed training in the Intertek In House RSPO P&C, MYNI. He was a member in the stakeholder consultation and development of the Malaysian Criteria & Indicators (MC&I) for Forest management Certification. He has been involved in the auditing of Forest Management Certification for the Perak State Forestry Department and Pahang State Forestry Department. He has also been involved with a German based company in testing their criteria for carbon tracing in an oil palm plantation in 2011. He had also acted as the regional consultant to International Tropical Timber Organization (ITTO) for the Asia Pacific region in the Evaluation and Monitoring of Projects funded by the organization from 1994 to 1998. Projects funded are mainly forestry related such as reforestation, conservation, community forestry apart from other research based projects.
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Mr. Mohd Nazib bin Marwan (MNM) – Assessor / Technical Expert (Occupational Health & Safety and Social) – Diploma in Mechanical Engineering
Mr Mohd Nazib Marwan has over 11 years work experience in occupational safety and health sector (since 2003). He has 5 years working experience as Factories and Machinery Inspector with Department of Occupational Safety & Health Malaysia (DOSH) and earlier he has been certified with Certificate for Safety and Health Officer from National Institute of Occupational Safety and Health (NIOSH). He has successfully completed the IRCA accredited Lead Auditor Course in ISO 9001:2008, OHSAS 18001: 2007 and the Intertek In -House training on RSPO P&C and MYNI Assessor courses. He is also an ISO 9001 Lead Auditor and OHSAS 18001 auditor with Intertek, Malaysia and has performed over 400 auditing days on quality, safety and health in various sectors including palm oil industries since 2012. He is a member of the RSPO CB Assessment team which audited several RSPO certified Plantation Management Units since 2014.
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Appendix B:
Assessment Plan (Actual)
Date Time Assessors and Assessment Activity Asssessment Team 5 Oct 15 8.30 am – Travel to KKS Sg. Tengi (POM) Office Monday 10.00 am 10.00 am Opening Meeting and Briefing at KKS Sg. Tengi - POM Office (Day 1) – 10.30 (to be attended by representatives from the Estates as well) am 10.30 am Document Review and Assessment by all Assessors on respective – 12.30 RSPO P&C:1 to 8 at POM pm OCL/ HTW SAZALI MNM Site assessment at Site assessment at Site assessment at Palm Oil Mill Palm Oil Mill Palm Oil Mill • P1 Transparency • P2 Laws & regulations • P2 Laws & regulations • P2 Laws & regulations • P5 Environmental, • P6 Employees, • P3 Economic & Conservation & HCV Individuals & Financial Viability • P8 Continual Communities incl. • P4 Best Practices at Mill Improvement Gender Issues • P8 Continual • P8 Continual Improvement Improvement • SCC for POM • Review of changes for compliance to revised RSPO P&C, MYNI and RSPO SCC • Verification of effectiveness of corrective actions for non-conformances • Review of Time Bound Plan • Verification for compliance with rules on partial certification 12.30 pm Lunch Break – 1.30 pm 1.30 pm – Continue site assessment at Palm Oil Mill 5.00 pm 5.00 pm – Travel to Hotel & Break 6.00 pm 6.00 pm – Team Meeting and Discussion 7.00 pm
Date Time Assessors and Assessment Activity 6 Oct 15 8.30 am – OCL/ HTW SAZALI MNM Tuesday 12.30 pm Site assessment at Site assessment at Site assessment at FELDA/FTP Soeharto FELDA/FTP Soeharto FELDA/FTP Soeharto (Day 2) estate estate estate • P1 Transparency • P2 Laws & regulations • P2 Laws & regulations • P2 Laws & regulations • P5 Environmental, • P6 Employees, • P3 Economic & Financial Conservation & HCV Individuals & Viability • P8 Continual Communities incl. • P4 Best Practices at Improvement Gender Issues Estates • P8 Continual • P7 New Plantings Improvement • P8 Continual Improvement 12.30 pm – Lunch Break 1.30 pm 1.30 pm - Continue site assessment at FELDA/FTP Soeharto estate 5.00 pm 5.00 pm – Travel to Hotel & Break 6.00 pm
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6.00 pm – Team Meeting and Discussion 7.00 pm
Date Time Assessors and Assessment Activity 7 Oct 15 8.30 am – OCL/ HTW SAZALI MNM Wednesday 12.30pm Site assessment at Site assessment at Site assessment at FELDA/FTP Sg Tengi FELDA/FTP Sg Tengi FELDA/FTP Sg Tengi (Day 3) estate estate estate • P1 Transparency • P2 Laws & regulations • P2 Laws & regulations • P2 Laws & regulations • P5 Environmental, • P6 Employees, • P3 Economic & Financial Conservation & HCV Individuals & Viability • P8 Continual Communities incl. • P4 Best Practices at Improvement Gender Issues Estates • P8 Continual • P7 New Plantings Improvement • P8 Continual Improvement 12.30 pm – Lunch Break 1.30 pm 1.30 pm - Continue site assessment at FELDA/FTP Sg Tengi estate 5.00 pm 5.00 pm – Travel to Hotel & Break 6.00 pm 6.00 pm – Team Meeting and Discussion 7.00 pm
Date Time Assessors and Assessment Activity 8 Oct 15 8.30 am – OCL/ HTW SAZALI MNM Thursday 10.00 am Site assessment at Palm Stakeholders’ Consultation on the following (Day 4) Oil Mill categories (see Notes 1 and 2 below): • P1 Transparency • Contractors • P2 Laws & regulations • Suppliers • P3 Economic & Financial • Transporters Viability • NGOs • P4 Best Practices at Mill • Government Department / Agencies • P8 Continual • Local Community Improvement • Settlers, in the case of independent and organized • SCC for POM smallholders. Notes 1. It is mandatory for the PMU to inform Intertek and provide the information (as a minimum the no. of stakeholders in each applicable category and contact number) on the stakeholders prior to the assessment. 2. This will facilitate the random and impartial selection of stakeholders (including independent and organized smallholders, where applicable) and to meet the sample size requirement 10.00 am – Site assessment at POM or estates to follow up on any specific criteria/areas 12.30 pm 12.30 pm – Lunch Break 1.30 pm 1.30 pm – Preparation for Closing Meeting 2.30 pm 2.30 pm – Team Meeting and Discussions with KKS Sg. Tengi Management Representative 3.30 pm 3.30 pm – Closing Meeting & Briefing at Palm Oil Mill Office 4.30 pm
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Appendix C-1:
Location of Felda Gobal Ventures Plantations (Malaysia) Sdn Bhd (FGVPM) - KKS Sg. Tengi Grouping, Kuala Kubu Baharu, Selangor Darul Ehsan, Malaysia
Felda Sg. Tengi
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Appendix C-2-1: FELDA/FTP Gedangsa Estate
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Appendix C-2-2: FELDA/FTP Soeharto Estate
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Appendix C-2-3: FELDA/FTP Sg. Tengi Selatan Estate
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Appendix C-2-4: FELDA/FTP Sg. Tengi Estate
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Appendix D:
Photographs of Assessment findings at KKS Sg. Tengi
Interviewing manurers at Soeharto Estate First aid box for manurers at Soeharto Estate
Interviewing harvester at Sg. Tengi Estate Barn owl box at Sg. Tengi Estate
Improper dumpsite at Soeharto Estate Improper dumpsite at Sg. Tengi Estate
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Appendix E:
Revised FELDA RSPO Time Bound Plan (2015)
Table 1: FGV RSPO CERTIFICATION : PROGRESS REPORT as at 30 /10 /2015
Certification Date Of Date Of No Complex CSPO (MT) CSPK (MT) Remarks Body Audit Certificate
1 Kota Gelanggi (SG)* CUC 29.09.2009 22.07.2010 46,980 10,552 RSPO Certified 2 Lepar Utara 06 CUC 29.09.2009 22.07.2010 36,921 9,333 Report 3 Padang Piol CUC 28.03.2011 13.12.2012 15,197 3,819 Audited (closing NC) 4 Jengka 3 (SG)* CUC 28.03.2011 13.12.2012 24,102 6,142 Internal 5 Jengka 8 CUC 28.03.2011 13.12.2012 49,805 11,713 Future 6 Lepar Utara 04 (SG)* BSI 06.07.2011 12.09.2012 30,200 7,000 7 Jengka 21 (SG)* BSI 09.07.2011 14.01.2013 48,024 10,614 8 Jengka 18 BSI 13.07.2011 16.01.2013 58,645 13,963 9 Wa Ha BSI 21.02.2011 31.05.2012 31,416 8,211 10 Adela TUV 21.03.2011 16.04.2012 28,746 7,726 11 Lok Heng TUV 21.03.2011 16.04.2012 12,371 3,198 12 Semenchu SGS 06.06.2011 25.07.2012 44,378 8,480 13 Bukit Mendi INTERTEK 05.12.2011 05.10.2012 25,898 6,965 14 Kemasul CUC 19.12.2011 20.12.2012 43,754 11,066 15 Triang CUC 21.12.2011 15.10.2012 27,949 8,912 16 B. Kepayang SIRIM 27.12.2011 07.01.2013 34,175 8,485 17 Tementi SIRIM 19.12.2011 09.09.2013 31,286 8,458 18 Bukit Besar CUC 03.12.2012 28.03.2014 22,228 5,876 Certified on 28.03.2014 19 Bukit Sagu BSI 20.12.2012 12.02.2014 26,720 7,429 Certified on 12.02.2014 20 Fajar Harapan INTERTEK 21.10.2013 27.02.2014 32,965 7,708 Certified on 27.02.2014 21 Baiduri Ayu INTERTEK 21.10.2013 14.04.2014 18,756 4,138 Certified on 14.04.2014 22 Lepar Hilir BSI 18.12.2012 14.04.2014 42,572 12,069 Certified on 14.04.2014 23 Kulai CUC 05.12.2012 14.04.2014 25,230 7,115 Certified on 14.04.2014 24 Penggeli CUC 06.12.2012 14.04.2014 31,322 8,890 Certified on 14.04.2014 25 Belitong SIRIM 10.12.2012 13.06.2014 6,166 1,932 Certified on 13.06.2014 26 Kahang SIRIM 12.12.2012 13.06.2014 12,387 3,484 Certified on 13.06.2014 27 Nitar SIRIM 17.12.2012 13.06.2014 14,440 4,430 Certified on 13.06.2014 28 Embara Budi INTERTEK 5-9.05.2014 21.08.2014 30,553 6,445 Certified on 21.08.2014 29 L. Kemudi INTERTEK 5-9.05.2014 02.10.2014 46,957 10,764 Certified on 02.10.2014 30 Kalabakan INTERTEK 09-13.06.14 06.10.2014 21,170 3,890 Certified on 06.10.2014 31 Umas INTERTEK 09-13.06.14 29.10.2014 20,210 4,935 Certified on 29.10.2014 32 Kembara Sakti INTERTEK 21-25.08.14 26.11.2014 17,627 11,226 Certified on 26.11.2014 33 Mercu Puspita INTERTEK 11-15.08.14 21.11.2014 46,427 10,881 Certified on 21.11.2014 34 Hamparan Badai INTERTEK 11-15.08.14 03.12.2014 35,158 8,575 Certified on 03.12.2014 35 Nilam Permata INTERTEK 21-25.08.14 03.12.2014 54,096 12,367 Certified on 03.12.2014 36 Sg Tengi INTERTEK 29.09-02.10.14 03.12.2014 25,750 7,375 Certified on 03.12.2014 37 Panching INTERTEK 17-20.09.14 16.12.2014 17,164 4,449 Certified on 16.12.2014 38 Trolak INTERTEK 09-12.09.14 20.12.2014 23,296 6,608 Certified on 20.12.2014 39 Besout MUTUAGUNG 11-15.08.14 22.12.2014 38,142 11,443 Certified on 22.12.2014 40 Keratong 2 INTERTEK 22-26.09.14 05.01.2015 25,544 6,804 Certified on 05.01.2015 41 Selancar 2B INTERTEK 22-26.09.14 09.01.2015 11,460 3,215 Certified on 09.01.2015 42 Mempaga INTERTEK 29.09-02.10.14 23.02.2015 36,960 9,744 Certified on 23.02.2015 43 Jerangau Barat INTERTEK 03-06.11.14 23.02.2015 9,197 2,398 Certified on 23.02.2015 44 Jerangau Baru INTERTEK 03-06.11.14 24.02.2015 12,740 3,480 Certified on 24.02.2015 45 Selancar 2A MUTUAGUNG 13-17.10.14 24.04.2015 17,169 5,422 Certified on 24.04.2015 46 Keratong 3 MUTUAGUNG 22-26.09.14 01.07.2015 49,996 13,322 Certified on 01.07.2015 47 Pasoh MUTUAGUNG 29.09-03.10.14 01.07.2015 34,545 8,225 Certified on 01.07.2015 48 Kemahang MUTUAGUNG 05-08.04.15 28.07.2015 26,016 6,171 Certified on 28.07.2015 49 Krau MUTUAGUNG 02-05.09.14 19.08.2015 28,297 7,411 Certified on 19.08.2015 50 Kertih MUTUAGUNG 26-30.10.14 01.09.2015 26,932 6,890 Certified on 01.09.2015 51 Aring A MUTUAGUNG 19-23.04.15 25.09.2015 36,466 9,271 Certified on 25.09.2015 52 Neram MUTUAGUNG 07-11.09.14 15.10.2015 48,682 11,591 Certified on 15.10.2015 53 Serting MUTUAGUNG 29.09-03.10.14 9.10.2015 39,025 10,669 Certified on 09.10.2015 TOTAL CERTIFIED 1,602,212 411,279 54 Selendang MUTUAGUNG 22-26.09.14 35,848 8,112 55 Chalok MUTUAGUNG 02-06.11.2014 26,368 6,099 56 Tersang MUTUAGUNG 11-15.05.15 38,036 10,183 57 Maokil CUC 28-31.12.14 44,550 12,870 58 Keratong 09 CUC 28-31.12.14 51,670 14,480 Peer Review 59 Tenggaroh CUC 21-24.12.14 42,660 12,480 60 Tenggaroh Timur CUC 21-24.12.14 26,730 7,640 61 Kechau A CUC 05-10.01.15 52,300 13,340 62 Kechau B CUC 05-10.01.15 54,100 13,870 63 Palong Timur CUC 26-30.01.15 74,920 19,250 64 Serting Hilir CUC 19-23.01.15 66,520 19,270 65 Ciku MUTUAGUNG 19-23.04.16 25,853 6,813 66 Cini 2 MUTUAGUNG 15-29.05.15 31,472 7,525 Audited and closing NC 67 Cini 3 MUTUAGUNG 15-29.05.15 34,246 9,379 68 Air Tawar MUTUAGUNG 18-21.05.15 29,576 9,103 69 Sampadi MUTUAGUNG 15-18.06.15 30,086 7,758 70 Pontian Plantation MUTUAGUNG 08-12.06.15 30,000 9,000 TOTAL CSPO VOLUME 2,297,147 598,451
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Table 2:
No Mill complexes to be audited in the respective year
2009 2010 2011 2012 2013 2014 2015 2016 2017 Jengka 1 K.Gelanggi Adela Belitong F. Harapan Embara Budi Palong Timor Aring A Sampadi 21 Bukit 2 L. Utara 6 Jengka 3 Lok Heng Baiduri Ayu L. Kemudi Serting Hilir Cini 3 Pontian Besar 3 Jengka 8 Semencu Kahang Kalabakan Maokil Ciku Air Tawar L. Utara 4 Waha Kulai Umas Tenggaroh Kemahang 4 Jengka 5 B. Kepayang Nitar Neram T.Timor Tersang 18 Padang 6 Bukit Mendi Penggeli Pancing Kechau A Cini 2 Piol 7 Kemasul Lepar Hilir Besout Kechau B
8 Tementi Bukit Sagu Trolak Keratong 9
9 Triang Keratong 2
10 Keratong 3
11 Sg Tengi
12 Krau
13 Mempaga
14 Serting
15 Pasoh
16 Selancar 2A
17 Selancar 2B
18 Chalok
19 J. Barat
20 J. Baru
21 Kertih
22 Selendang Kembara 23 Sakti 24 M. Puspita
25 N. Permata
26 H. Badai Total 2 6 9 8 2 26 8 6 3 Audited Certified
Total: 70 PMUs
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Have the 9 PMUs for i.e. 6 for 2016 & 3 for 2017 been actually audited in 2015? Yes, all PMUs that was planned to be certified between 2016 and 2017 already audited for RSPO compliance in 2015. FGV top management has decide to expedite the RSPO certification as part of our commitment to be fully RSPO certified by 2017.
FGV new land concession for Oil Palm Plantation in Malaysia. In year 2014, FGV closed down two mills, Kilang Sawit Jeragan Bistari in Sabah and kilang Aring B in Aring, Kelantan to optimize our operation. All the crop form the mills's supply based was shifted to the nearby FGV mills.
On August 2014, FGV signed a deal to acquired Asian Plantations Limited (APL), a company based in Singapore. The acquisition of APL which consists of 5 estates measuring 24,000.00 ha and 60 ton/hr mill was completed on 7th November 2014. APL will be included in Felda/FGV RSPO time bound plan beginning January 2016 due to some legal matters to be solved. No new land concession outside Malaysia for 2015.
New Planting Procedure for newly acquired plantations. FGV had conducted HCV and SIA assessment for the APL concession and in the process of submitting the NPP to RSPO (Table 3):
Proposed New Date of Hectarage New Planting Procedure Updated Status – SEIA & HCV Acquisition Propossal (Ha) (NPP) Nov 2015
Asian Plantation HCV and SIA HCV on HCVRN peer 07 Nov 2014 24,000.00 NPP in process. Limited conducted. review process.
At INDONESIA (Table 4):
Proposed New Date of New Planting Updated Status – Hectarage SEIA & HCV Acquisition Proposal Procedure (NPP) Sept 2015
Nursery and Planting PT CNP, SEIA: Completed Development Jun 2012 14,385.00 NPP Completed Kalimantan HCV: Completed ( 800 ha planted as October 2015)
PT TAA, SEIA: Completed NPP completed and 738 ha planted as at Dec 2012 8,193.00 Kalimantan HCV: conducted approved by RSPO September 2015.
NO ITEM FINDING REMARK All subsidiaries, estate and mills are included Refer in the time bound plan except for APL which 1 Time Bound Plan. table 1 will be included in the Time Bound Plan and 2. starting 2016. Felda Time Bound Plan has been revised three times. Felda need to expedite the 2 Justification of time Bound Plan certifications process. All 70 PMUs has been audited in 2015 by different certification accredited bodies. At the time of this update (5 November 3 Stakeholder comment. 2015), there was a comment from WSJ
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regarding abuse of human rights in Felda as in RSPO website. The comment from WSJ has mentioned that Felda have involved in labour trafficking, minimum wages and poor working conditions. Internal and external investigation have been done and we found out that part of the allegation is not true. Although there were some issues concerning minimum wages and employment contract, that issues are being rectified. No new land acquired in 2015. Pontian United Plantations in Kinabatangan acquired in 2013 and now included in the time bound 4 Newly acquired subsidiaries plan. Asian Plantation Limited in Miri which was acquired in November 2014 will be included in the time bound plan beginning 2016. No replacement of primary forest or any are identified as containing High No new land concession outside and inside Conservation Values (HCVs) or Malaysia in 2015. Only previous acquisition required to maintain or enhance HCVs such as PT CNP and PT TAA undergo the NPP Refer 5 in accordance with RSPO criteria 7.3. process. APL which acquired last year is on table 3 Any new planting since January 1 st NPP process, where the progress now under 2010 must comply with the RSPO New the HCVRN review. Plantings Procedure (Annex 5). Land conflicts, if any, are being There are complain from the Begahak resolved through a mutually agreed community regarding the land in Sahabat 55 process, e.g. RSPO Grievance which being raised to RSPO complaint panel. 6 procedure or Dispute Settlement Conflicts being resolve through mutual Facility, in accordance with RSPO agreement from both sides, but until 30th criteria 6.4, 7.5 and 7.6. October, there still no final decision made. Labour disputes, if any, are being resolved through a mutually agreed So far there is no labour disputes arise within 7 proceed, in accordance with RSPO Felda and FGV. criterion 6.3. Legal non-compliance, if any, are being resolved in accordance with the 8 Refer no 3. legal requirements, with reference to RSPO criteria 2.1 * 2.2.
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